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BioTelemetry, Inc. Message Board

  • sale4usir sale4usir Jul 12, 2009 10:00 PM Flag

    Isn't this news already priced in the big drop?

    BEAT said earlier the company's guidance is based on "lower than anticipated commercial reimbursement rates" and so the big PPS drop earlier should already factor in a lower reimbursement rate. The only problem is it didn't say how much lower the expected rate drop was, or am I missing something here?? Does anyone know if BEAT said anything about expected rate drop when they released 2009 guidance earlier?

    Earlier guidance excerpt:
    "The Company is revising its revenue guidance for full year 2009 to reflect growth of 30%-33% compared to the full year 2008 and now expects revenue for 2009 to be in the range of $156 million to $160 million. The revenue guidance is based on lower than anticipated commercial reimbursement rates."

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    • I believe the street has been pricing in an across the board 20%+ price cut from all insurance companies, not just medicare. (Medicare is just a portion of cardionet's business.)

      I think this is priced in, and more imporantly, now that an overhang is removed, people can start to finally value the company. it's really cheap.

      • 1 Reply to jerrywang99
      • I would have to disagree. The Highmark decrease definitely wasn't anticipated. It was the Highmark decrease that resulted in the removal of the previously announced (on June 30th) 2009's guidance. If I am not mistaken earlier this year they said they did not anticipate a reduction from Highmark was in the works.

        The combination of the decrease in reimbursement and the now removal of 2009's guidance is why I believe July 12's announcement was not factored in to the previous decline.

        From their June 30th press release:

        CardioNet has previously indicated that while it had been aware Highmark Medicare Services was conducting a normal review of the reimbursement rate for MCOT™, it had received no indication of any rate adjustment or the specific timing of a Highmark decision prior to being notified on July 9, 2009. During a July 9 communication, Highmark reported that CardioNet would receive a letter notifying it of a change in reimbursement including the exact amount of the change. That letter arrived July 10, 2009.

    • They said nothing about a Highmark rate drop...they just got notified on July 10th. And they (management) probably spent the better part of the weekend trying to figure out what the heck to do now.

 
BEAT
6.77Sep 29 4:00 PMEDT

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