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BioTelemetry, Inc. Message Board

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  • jerrywang99 jerrywang99 Jul 13, 2009 12:17 AM Flag

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

    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.

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    • 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.

 
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