waiting for a possible medicare decision, page-8

re: possible delay medicare decision Reuters

Merrill sees delay on Thoratec Medicare decision
Monday September 15, 11:25 am ET


NEW YORK, Sept 15 (Reuters) - Merrill Lynch said on Monday it expects federal regulators to delay a decision on expanding coverage of Thoratec Corp.'s (NasdaqNM:THOR - News) heart device for Medicare patients.
The Centers for Medicaid & Medicare Services has been expected to issue a decision by Monday, but Merrill Lynch analyst Timothy Lee wrote in a research note that a decision is "more likely to occur in the coming weeks."

Thoratec has requested that approval for its Heartmate Left Ventricular Assist Device for late-stage congestive heart failure be expanded to include Medicare patients who are not candidates for heart transplants.

A spokesman for the federal agency, which provides health coverage for 41 million elderly and disabled people, said officials had reviewed the device over the weekend, but he was not sure if the review was complete.

Any decision would not be determined before 4 p.m. EDT on Monday. The CMS spokesman said that while a decision could be announced on Monday, regulators could also delay any decision for few days, or announce a new date further in the future when a decision would be made.

Medicare reimbursement for the device now covers an estimated 4,000 Americans awaiting a heart transplant in any given year. An expanded reimbursement could add an estimated 100,000 U.S. patients with late-stage congestive heart failure.

Lee, who maintained a "buy" rating on Thoratec, said the possibility exists that regulators could classify the device, which assists the heart's pumping chamber, in a higher reimbursement category.

The device costs about $60,000, and hospital and doctor fees can drive the total cost to about $200,000.

Thoratec was not immediately available for comment.

Thoratec shares rose $1.12 cents to $17.95 in morning Nasdaq trade.


Cheers,

Fig Jam