Teleflex Comments on the Centers for Medicare & Medicaid Services 2022 Medicare Physician Fee Schedule Final Rule

Rhea-AI Summary

Teleflex (NYSE: TFX) responded to the November 3, 2021, release of the CMS 2022 Medicare Physician Fee Schedule (MPFS) Final Rule, effective January 1, 2022. The rule reduces Non-Facility Practice Expense Relative Value Units, impacting reimbursement for over 600 procedures, including the UroLift System. CEO Liam Kelly expressed disappointment, noting potential patient migration to outpatient settings due to reimbursement changes. The UroLift CPT codes will see fee reductions of 8% and 11%, respectively, and a phased implementation over four years. Financial implications will be discussed in Q4 2021 results.

Positive

• Phased approach to implementation allows time for adaptation over four years.
• Engagement with CMS reflects proactive efforts to mitigate impacts on healthcare access.

Negative

• Reimbursement for UroLift CPT codes reduced by 8% and 11%, affecting revenue.
• Reduction in Relative Value Units may lead to migration of patients from office to outpatient settings.

WAYNE, Pa., Nov. 03, 2021 (GLOBE NEWSWIRE) -- Teleflex Incorporated (NYSE: TFX), a leading global provider of medical technologies today commented on the recently released Centers for Medicare & Medicaid Services (CMS) Calendar Year 2022 Medicare Physician Fee Schedule (MPFS) Final Rule. The Final Rule was released on November 3, 2021 and updates to payment policies, payment rates and other provisions for services furnished under the MPFS are effective January 1, 2022.

Liam Kelly, Chairman, President and Chief Executive Officer, said, “Although the phase-in of the Proposed Rule is better than immediate implementation, we are disappointed in CMS’ decision to reduce the Non-Facility Practice Expense (PE) Relative Value Units (RVUs), which will negatively impact reimbursement for more than 600 office-based procedures, including the UroLift System, across a broad range of surgical specialties. We anticipate that this decision may cause our provider community to migrate patients to the ASC or hospital outpatient setting. We will continue to partner with urologists and societies while engaging with CMS, as appropriate, over the subsequent months or years to limit any negative impacts on Medicare patient access to safe and effective clinical care in the office setting. We will also continue to support our provider community as appropriate to migrate patients to the ASC or hospital outpatient setting as needed.”

After applying the CMS 2022 Final Rule RVUs and Conversion Factor (CF) of 33.59, the 2022 national unadjusted physician fee for UroLift CPT Codes 52441 and 52442 will be reduced by 8% and 11% respectively. The MPFS Final Rule will be phased in over four years. The national unadjusted payment rate varies geographically.

Teleflex will discuss the expected financial impact of the MPFS Final Rule when the company releases its fourth quarter 2021 results and 2022 operational outlook.

About Teleflex Incorporated
Teleflex is a global provider of medical technologies designed to improve the health and quality of people’s lives. We apply purpose driven innovation – a relentless pursuit of identifying unmet clinical needs – to benefit patients and healthcare providers. Our portfolio is diverse, with solutions in the fields of vascular access, interventional cardiology and radiology, anesthesia, emergency medicine, surgical, urology and respiratory care. Teleflex employees worldwide are united in the understanding that what we do every day makes a difference. For more information, please visit teleflex.com.

Teleflex is the home of Arrow^®, Deknatel^®, LMA^®, Pilling^®, QuikClot^®, Rüsch^®, UroLift^®, and Weck^® – trusted brands united by a common sense of purpose.

Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Any forward-looking statements contained herein are based on our management's current beliefs and expectations, but are subject to a number of risks, uncertainties and changes in circumstances, which may cause actual results or company actions to differ materially from what is expressed or implied by these statements. These risks and uncertainties are identified and described in more detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

Teleflex, the Teleflex logo, Arrow, Deknatel, LMA, Pilling, QuikClot, Rüsch, UroLift, and Weck are trademarks or registered trademarks of Teleflex Incorporated or its affiliates, in the U.S. and/or other countries.
© 2021 Teleflex Incorporated. All rights reserved.

Contacts:
Teleflex Incorporated:
Lawrence Keusch
Vice President, Investor Relations and Strategy Development

John Hsu, CFA
Vice President, Investor Relations
investors.teleflex.com
610-948-2836

FAQ

What is the impact of the CMS 2022 Final Rule on Teleflex's UroLift System?

The CMS 2022 Final Rule reduces reimbursement rates for UroLift CPT codes by 8% and 11%, which may affect its revenue.

When does the CMS 2022 Medicare Physician Fee Schedule take effect for Teleflex?

The CMS 2022 Medicare Physician Fee Schedule will take effect on January 1, 2022.

How does the CMS ruling affect Teleflex's financial outlook for 2022?

Teleflex will discuss the expected financial impact of the MPFS Final Rule during its fourth quarter 2021 results announcement.

What changes are occurring in reimbursement rates as per the CMS Final Rule for Teleflex?

The Non-Facility Practice Expense Relative Value Units are being reduced, impacting more than 600 procedures, including those related to urology.