• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Medicare Legislation Extends Safeguards for Fair Reimbursement of Brachytherapy Seeds

Posted on: Thursday, 21 December 2006, 09:01 CST

Theragenics Corporation® (NYSE: TGX), a medical device company serving the cancer treatment and surgical products markets, announces positive developments on reimbursement policies for its brachytherapy business. Congress recently enacted the Tax Relief and Health Care Act of 2006, which extends and refines the Medicare safeguards initially enacted by Congress in 2003 for brachytherapy seeds administered in the hospital outpatient setting. The President signed the legislation on December 20, 2006.

The new legislation extends the current reimbursement policies for brachytherapy seeds through the end of 2007, ensuring that the Medicare program does not implement potentially restrictive caps on reimbursement during that period. In addition, the new legislation recognizes that prostate cancer patients must have meaningful access to "stranded" brachytherapy seeds, which increasingly are used in clinical practice to further enhance the safety and efficacy of treatment. The legislation establishes a permanent requirement for Medicare to use separate codes for the reimbursement of stranded brachytherapy devices, beginning no later than July 1, 2007. Stranded seeds are becoming a larger portion of Theragenics' brachytherapy business. This important provision should allow reimbursement rules to recognize the value of this important clinical configuration even after 2007.

"This legislation provides important safeguards to protect the immediate and long-term reimbursement for seeds. It also protects the prostate cancer patient who seeks and deserves access to all treatment options," stated M. Christine Jacobs, CEO and President of Theragenics, the manufacturer and marketer of the TheraSeed® and I-Seed brachytherapy devices. "Adequate reimbursement supports the long-term viability of this valuable treatment. With over 15 years of independent research, prostate brachytherapy provides cure rates that equal or exceed those achieved with other treatments -- while at the same time brachytherapy carriers a lower risk of complications such as impotence and urinary incontinence."

Theragenics worked closely with the Coalition for the Advancement of Brachytherapy ("CAB"), a watchdog group comprised of industry representatives and clinicians. The Company took the lead role in the effort to work with members of Congress and other policymakers to secure the provisions in the Tax Relief and Health Care Act of 2006. These efforts have been ongoing and reached an intense finish as the 109th Congress recessed on December 9, 2006.

Theragenics Corporation (NYSE: TGX) operates two business segments: its brachytherapy seed business and its surgical products business. The brachytherapy business manufactures and markets its premiere product, the palladium-103 TheraSeed® device (www.theraseed.com) and I-Seed, an iodine-125 based device, which are used primarily in the minimally invasive treatment of localized prostate cancer. Its surgical products business manufactures and distributes wound closure, needles and other surgical products used in the urology, veterinary, orthopedic and other markets through its CP Medical subsidiary, and disposable medical devices used for vascular access through its Galt Medical Corp. subsidiary. For additional information, call Theragenics' Investor Relations Department at (800) 998-8479 or visit www.theragenics.com.

This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks and uncertainties, including, without limitation, the anticipated impact of the Tax Relief and Health Care Act of 2006 and anticipated positive results in general. Actual results may be affected by among other things, implementation of the new legislation by CMS, effectiveness and execution of marketing and sales programs by Theragenics and its distributors, changes in product pricing by Theragenics or other brachytherapy seed producers, continued acceptance of the products by the market, continued demand for Pd-103, introduction and/or availability of competitive products by others, potential future changes affecting Medicare or other third-party reimbursement, and other factors set forth from time to time in the Company's Securities and Exchange Commission filings.

All forward looking statements and cautionary statements included in this document are made as of the date hereby based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward looking statement or cautionary statement.

Source: Business Wire

More News in this Category