Shares in Intersect ENT (NSDQ:XENT) yesterday tumbled over 30% over reimbursement woes, despite the medical device maker handily topping expectations on Wall Street with its 3rd quarter results.
The company said that the Centers for Medicare & Medicaid Services released its 2017 Hospital Outpatient Final Rule, which included reimbursement rates for sinus surgery at a fixed amount 40-50% below the current average amount. The rule is set to go into effect January 1.
“We continue to assess the impact of the Medicare ruling, which we believe has the potential to impact a limited segment of our business, approximately 8%. Based on our experience with private payors and their reaction to Medicare changes, we also believe that this ruling will have little to no near-term impact on our non-Medicare business. We remain focused on leveraging our compelling pipeline of products and the strength and tenure of our sales force to continue to deliver high value options for chronic sinusitis patients,” prez & CEO Lisa Earnhardt said in a press release.
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