iRhythm Technologies (Nasdaq:IRTC) stock soared today on positive reimbursement news out of CMS as the agency makes 2023 fee schedule proposals.
Truist analysts yesterday evening pointed to CMS proposing a national coverage determination (NCD) of $229 for the ZioXT wearable cardiac monitor. When incorporating the geographic physician payment adjustments, the analysts thought the actual payment over time to reach over $280.
“We think investors in recent weeks were even potentially bracing for a rate lower than [around] $230, and thus this rate level should serve as a clearing event,” said Truist analysts David Rescott, Richard Newitter and Samuel Brodovsky.
A final CMS rule for fiscal year 2023 is expected around November, according to the analysts.
IRTC shares up more than 22% to $140.99 apiece in midday trading today. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — is up slightly.
In a statement later shared with MassDevice, iRhythm said: “We are appreciative to CMS for their ongoing engagement, the evaluation of the cost inputs they have been provided and for their continued focus on establishing national rates for long-term continuous ECG monitoring. We will continue to engage with CMS during the open comment period to share relevant information in support of the rule-making process, in anticipation of the release of the Final Rule. Meanwhile, we remain focused on continuing the important work of delivering our Zio XT service to the millions of patients who need it.”