Reimbursement problems continue to be a fly in the ointment for Cambridge Heart Inc. (OTC:CAMH), which saw its business suffer during the first half of 2010 due to proposed rate cuts for cardiologists.
Cambridge Heart posted a $1.4 million net loss on about $654,000 in sales during the three months ended June 30, compared to a $1.8 million loss on $793,000 in sales during the same period last year.
For the six-month period the company narrowed its net losses to $2.8 million on $1.3 million in sales, compared to a $3.9 million loss on $1.6 million in revenues during Q2 2009.
Officials blamed “uncertainty around certain global reductions in reimbursement, which continued to negatively affect physician purchasing decisions” for the 18 percent drop in sales, according to a press release.
Cambridge Heart warned in late 2009 that changes in the Centers for Medicare & Medicaid Services’ 2010 Medicare Physician Fee Schedule could result in steep cuts in reimbursement payments to cardiologists.
While temporary fixes were put into place to try and stem the effects of the cuts over the first half of the year, Cambridge Heart officials said the “uncertainty, and the related cash flow impact on physician practices, was a major factor in the revenue decline during the period.”
Officials expressed confidence that the issues are mostly behind the company and looked forward to the September release of its Microvolt T-Wave Alternans (MTWA) OEM module, for which it is partnering with Cardiac Sciences Corp. (NSDQ: CSCX).