iRhythm Technologies Comments on Medicare Administrative Contractor 2022 Rate Update

Rhea-AI Summary

On January 10, 2022, iRhythm Technologies (NASDAQ:IRTC) announced that Novitas Solutions updated the reimbursement rates for CPT codes 93243 and 93247, applicable to their Zio service, to $223 and $233, retroactive to January 1, 2022. This adjustment could have boosted 2021 revenues by approximately 10%, offering clarity as the company moves into 2022. CEO Quentin Blackford expressed gratitude towards Novitas and other stakeholders, emphasizing the continued efforts in advancing cardiac monitoring services. Full financial details for Q4 and FY 2021 will be shared in February.

Positive

• Updated reimbursement rates for CPT codes 93243 and 93247 may increase revenue by around 10% for 2021.
• CEO expressed optimism regarding the company's growth in 2022.

Negative

• None.

SAN FRANCISCO, Jan. 10, 2022 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ:IRTC), a leading digital healthcare solutions company focused on the advancement of cardiac care, commented on ​​the recent update by Novitas Solutions (Novitas), a Medicare Administrative Contractor (MAC), regarding updated rates applicable to the Current Procedural Terminology (CPT) codes 93243 and 93247.

On January 10, 2022, Novitas updated reimbursement rates for CPT codes 93243 and 93247 for the Houston jurisdiction to $223 and $233, respectively. These updated rates are retroactive to January 1, 2022.

“We would like to thank Novitas, and the other MACs, for their continued engagement and efforts to better understand long-term continuous ECG monitoring, the clinical benefits that it provides to patients and the costs and resources that go into to delivering the service. The updated rates demonstrate progress in further understanding costs associated with delivering the Zio service,” said iRhythm CEO and President, Quentin Blackford. “We will continue to work with the MACs, the Centers for Medicare and Medicaid Services (CMS) and other stakeholders to provide information in support of our continued pursuit of fair and appropriate pricing. We would also like to thank our industry partners, physician customers, and patients who have helped tremendously with these efforts.”

iRhythm has analyzed the impact these updated 2022 Novitas rates would have had on full year 2021 revenue had those rates been in effect in 2021. The updated Novitas rates would have positively impacted 2021 total company revenue by approximately 10%.

“We are pleased to have more clarity as we set out in 2022 and continue our pursuit of making Zio the standard of care in ambulatory cardiac monitoring. This positive news builds on the momentum in the business that we saw in the fourth quarter of 2021 where unit volumes slightly exceeded prior company expectations,“ commented Mr. Blackford. “We look forward to sharing full details of our fourth quarter and full year 2021 financial performance during our earnings call in late February.”

About iRhythm Technologies, Inc.
iRhythm is a leading digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed. The company combines wearable biosensor devices worn for up to 14 days and cloud-based data analytics with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company believes improvements in arrhythmia detection and characterization have the potential to change the clinical management of patients.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements relating to reimbursement coverage, reimbursement rates, growth expectations and financial performance. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission on Forms 10-K and 10-Q. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Investor Relations Contact:
Leigh Salvo
(415) 937-5404
investors@irhythmtech.com

Media Contact:
Morgan Mathis
(310) 528-6306
irhythm@highwirepr.com

FAQ

What are the updated reimbursement rates for iRhythm's services?

The updated rates for CPT codes 93243 and 93247 are $223 and $233, respectively.

How might the new reimbursement rates impact iRhythm's revenue?

The updated rates could have positively impacted 2021 total company revenue by approximately 10%.

When will iRhythm announce its Q4 and FY 2021 financial performance?

iRhythm will share full financial details during their earnings call in late February.