Hospital Outpatient Rates Increase Nearly 17 Percent; Ambulatory Surgical
Centers Increase 364 Percent
IRVINE, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Endocare, Inc. (Nasdaq: ENDO), an innovative medical device company focused on the development of minimally invasive technologies used by urologists and interventional radiologists for tissue and tumor ablation, announced today that the federal Centers for Medicare and Medicaid Services (CMS) have increased their hospital outpatient and ambulatory surgical center reimbursement rates for cryoablation treatments for prostate cancer. The new rates, which were proposed in August and will go into effect in 2008, were confirmed on November 1, 2007 and will be published in final regulations documenting these payment increases in the Federal Register on November 27, 2007.
The new 2008 CMS rates for prostate cryoablation performed in an outpatient hospital setting for patients who do not stay overnight, under APC code 674, were raised from $6,685.05 to $7,816.10, a 16.9 percent increase. The cryoablation rates for ambulatory surgical centers, known as ASC code 55873, were raised from $1,339.00 to $6,219.63, an increase of 364 percent.
Endocare Chairman, CEO and President Craig T. Davenport said: "We believe these changes underscore the fact that cryoablation is becoming a more accepted treatment with physicians and continues to receive positive reimbursement from CMS. We are very pleased that hospitals and ambulatory surgical centers will receive these increased payments and know these changes will assist Medicare members to obtain cryoablation treatment in these outpatient settings."
Cryoablation is a minimally-invasive treatment that uses the Endocare CryoCare Surgical System(R) to precisely target, freeze and destroy cancerous tissue.
Endocare, Inc. -- http://www.endocare.com -- is an innovative medical device company focused on the development of minimally invasive technologies for tissue and tumor ablation. Endocare has initially concentrated on developing technologies for the treatment of prostate cancer and believes that its proprietary technologies have broad applications across a number of markets, including the ablation of tumors in the kidney, lung, liver and palliative intervention (treatment of pain in association with metastases).
Statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including, without limitation, the effects of the reimbursement rate increases described above. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission. Such risk factors include, but are not limited to, the following items: the Company may incur significant expenses in the future as a result of the Company's obligation to pay legal fees for and otherwise indemnify former officers and former directors in connection with the ongoing investigation and legal proceedings involving them; the Company has a limited operating history with significant losses and losses may continue in the future; the Company may require additional financing to sustain its operations and without it the Company may not be able to continue operations; the sale of the Company's common stock to Fusion Capital may cause dilution, and the sale of the shares of common stock acquired by Fusion Capital or Frazier Healthcare Ventures could cause the price of the Company's common stock to decline; the Company's business may be materially and adversely impacted by the loss of the Company's largest customer or the reduction, delay or cancellation of orders from this customer or if this customer delays payment or fails to make payment; the Company may be required to make state and local tax payments that exceed the Company's settlement estimates; uncertainty relating to third party reimbursement; uncertainty regarding the ability to convince health care professionals and third party payers of the medical and economic benefits of the Company's products; the risk that intense competition and rapid technological and industry change may make it more difficult for the Company to achieve significant market penetration; and uncertainty regarding the ability to secure and protect intellectual property rights relating to the Company's technology. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligation to revise, or update publicly, any forward-looking statements for any reason.
Investor Contact: Media Contact: For Additional Information:
Matt Clawson Len Hall Craig T. Davenport, CEO
Allen & Caron, Inc. Allen & Caron, Inc. Michael R. Rodriguez, CFO
(949) 474-4300 (949) 474-4300 Endocare, Inc.
|SOURCE Endocare, Inc.|
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