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."
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.