ZOLL down on Suntrust note - Reimbursement Risks. This morning, ZOLL published its June 10Q. In it, the company added an additional risk factor regarding LifeVest reimbursement. At 20% of sales (high margin) and growing 50%+, LifeVest and the accompanying DME reimbursement (Durable Medical Equipment) has long been the biggest risk to the stock
Zoll Medical 10-Q adds additional risk, says SunTrust at SunTrust Zoll's 10-Q said a Durable Medical Equipment Regional Center issued for comment draft revisions to the local coverage determinations with respect to Medicare reimbursement for automated external defibrillators and wearable defibrillators, including our LifeVest product. The draft revisions would limit the indications for Medicare reimbursement for the LifeVest product. SunTrust said the draft increases a risk factor regarding LifeVest reimbursement, which is 20% of sales. Shares remain Buy rated with a $74 price target.
PLEASE NOTE the $74 price target still by SunTrust.