March 01, 2021 – Hillrom (Chicago, IL) provided an update on its planned acquisition of Bardy Diagnostics, Inc. (BardyDx), which it announced on January 19, 2021.
On January 29, 2021, a Medicare Administrative Contractor, Novitas Solutions, published new Category 1 reimbursement rates applicable to the Current Procedural Terminology (CPT) codes for the long-term cardiac monitoring category, including CPT codes 93241, 93243, 93245 and 93247.
As a result of the unexpected Novitas reimbursement rate reduction, Hillrom has asserted that a “Company Material Adverse Effect” has occurred, and therefore the closing conditions have not been satisfied.
BardyDx has advised Hillrom that it has filed a complaint against Hillrom in the Delaware Court of Chancery.
Hillrom said it will provide further updates as appropriate.