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Home » Outset Medical wins national VA contract

Outset Medical wins national VA contract

August 15, 2022 By Chris Newmarker

Outset Medical logoOutset Medical (Nasdaq:OM) announced today that it has won a national contract with the U.S. Department of Veterans Affairs to sell its Tablo hemodialysis system into the department’s 106 VA hospitals.

San Jose, California–based Outset already has Tablo deployed at some VA hospitals, which overall provide dialysis for 35,000 U.S. veterans. But the new five-year contract allows VA centers to acquire consoles to send veterans home. It also expands usage in the acute setting.

The contract covers an indefinite quantity of services and goods.

“Our honored veterans deserve to have the most advanced dialysis care possible, and it is our great privilege to support them through the SAC contract for hemodialysis care,” Outset Medical CEO Leslie Trigg said in a news release. “This partnership with the VA will further our mission to bring a technology-enabled, patient-centered approach to dialysis both in the acute and home setting.”

The news of the VA contract comes just weeks after Outset Medical announced FDA clearance needed to lift a shipment hold against providing Tablo systems for home use. FDA had requested the 510(k) clearance application for changes Outset Medical had made since the Tablo system’s original March 2020 clearance.

OM shares are up more than 25% in value since the Aug. 1 news that the shipment hold was over. But they are still trading at a level that is 40% less than six months ago. Some law firms are seeking to assemble shareholder suits against the company over its handling of the shipment hold. The company has told MassDevice that it plans to vigorously defend itself.

The VA contract is another positive development for Outset. OM shares were mostly unchanged this morning, trading at $21.28 apiece. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, is unchanged, too.

Filed Under: Business/Financial News, Dialysis, Digital Health, Featured, News Well Tagged With: Outset Medical

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About Chris Newmarker

Chris Newmarker is the executive editor of WTWH Media life science's news websites and publications including MassDevice, Medical Design & Outsourcing and more. A professional journalist of 18 years, he is a veteran of UBM (now Informa) and The Associated Press whose career has taken him from Ohio to Virginia, New Jersey and, most recently, Minnesota. He’s covered a wide variety of subjects, but his focus over the past decade has been business and technology. He holds bachelor’s degrees in journalism and political science from Ohio State University. Connect with him on LinkedIn or email at [email protected].

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