Kinetic Concepts, Inc. (NYSE: KCI) today announced that V.A.C.(R) Therapy will remain available for Medicare patients in the home as a result of the Medicare Improvements for Patients and Providers Act of 2008, which was enacted into law by Congress on July 15, 2008. The Act delays and significantly modifies the Competitive Bidding Program of the Centers for Medicare and Medicaid Services (CMS). Key provisions of the Act affecting KCI include:
— Exemption of Negative Pressure Wound Therapy (NPWT) from the first round of Competitive Bidding.
— Termination of all durable medical equipment supplier contracts previously awarded by CMS in the first round of Competitive Bidding.
— Delay of implementation of the first round of Competitive Bidding until January 2010.
— Delay of implementation of the second round of Competitive Bidding until January 2011.
— Imposed reduction of NPWT pricing by 9.5% for Medicare Part B placements, effective January 2009.
The law effectively delays competitive bidding for NPWT for at least thirty (30) months until January of 2011. As a result of this delay, KCI’s V.A.C. Therapy is immediately available to all Medicare Part B patients in all of the first round competitive bidding areas (CBAs).
“Passage of this legislation is good news for patients, caregivers and the healthcare delivery system. It means that all Medicare patients in the home will continue to have access to V.A.C. Therapy,” said Catherine M. Burzik, President and Chief Executive Officer of KCI. “We believe this is vitally important given the overwhelming evidence of the clinical and economic effectiveness of KCI’s V.A.C. Therapy System and the lack of comparable or effective alternatives.”
About KCI
Kinetic Concepts, Inc. (NYSE: KCI) is a leading global medical technology company devoted to the discovery, development, manufacture and marketing of innovative, high-technology therapies and products for the wound care, tissue regeneration and therapeutic support system markets. Headquartered in San Antonio, Texas, KCI’s success spans more than three decades and can be traced to a history deeply rooted in innovation and a passion for significantly improving the healing – and the lives – of patients around the world.
KCI’s three primary businesses include:
Advanced Wound Care – Includes KCI’s proprietary Vacuum Assisted Closure(R), or V.A.C.(R) Therapy System, which has been clinically demonstrated to promote wound healing through unique mechanisms of action while reducing the overall cost of treating patients with complex wounds.
Tissue Regeneration – Represented by KCI’s LifeCell business and includes tissue-based products for use in reconstructive, orthopedic and urogynecologic surgical procedures to repair soft tissue defects.
Therapeutic Support Systems – Includes specialty hospital beds, mattress replacement systems and overlays designed to address pulmonary complications associated with immobility, to reduce skin breakdown and assist caregivers in the safe and dignified handling of patients of size.
The company employs 7,000 people and markets its products in more than 20 countries. For more information about KCI, and how its products are changing the practice of medicine, visit www.KCI1.com.
Forward-Looking Statements
This press release may contain forward-looking statements regarding the expected performance of the company. Forward-looking statements may contain words such as believes, expects, anticipates, estimates, projects, intends, should, seeks, future, continue, or the negative of such terms, or other comparable terminology. Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Additional risks and factors are identified in KCI’s filings with the U.S. Securities Exchange Commission (the SEC), including its Annual Report on Form 10-K for the fiscal year ending December 31, 2007 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, which are available on the SEC’s Web site at http://www.sec.gov. KCI undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
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