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Medicare Agrees to Pay for Heart Device

The Associated Press
 
October 2, 2003

NEW YORK - Federal regulators have agreed to pay part of the cost for HeartMate, a battery-powered pump, to be implanted in Medicare and Medicaid patients with chronic heart failure, manufacturer Thoratec Corp. said Thursday.

The decision had been expected, but was significantly delayed - partially because of the cost.

Some doctors worried, however, that many of the 100,000 patients who could benefit may not receive the device because hospitals won't be willing to absorb the difference between the cost of the device and the procedure and what the government will pay.

The Centers for Medicare and Medicaid Services said it will pay $75,000, which is more than the $55,000 originally expected. However, doctors put the total cost of the device and operation at $150,000 to $200,000.

Other patients may not get the device because the government said it will pay for the procedure only when it is done in designated heart transplant centers that have implanted the HeartMate at least 15 times since January 1, 2001.

Thoratec said that makes about 60 centers eligible to implant the device, and they account for approximately 80 percent of all procedures done in the United States .

The HeartMate device is implanted near the heart. Blood drains through a tube from the left ventricle, the heart's main pumping chamber, and is circulated through the body. A second tube extends outside the body and is attached to a battery pack, worn on a shoulder holster.

The government had already paid for HeartMate to be used for patients awaiting heart transplants. The latest approval means patients who are ineligible for transplants because of other health problems can receive the device as a permanent treatment - known as destination therapy.

"We are extremely gratified to receive a favorable Medicare reimbursement outcome for destination therapy, and we are very encouraged by the content of the decision analysis itself," Thoratec president and chief executive Keith Grossman said.

Grossman had previously said Thoratec will help hospitals apply to the government for additional money and hopes to bring reimbursement to $100,000.

Thoratec shares were down 29 cents to close at $16.41 on the Nasdaq Stock Market.

 

 

 

 

 

 

 

 


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