CardioNet CEO: Not able to sustain operations

By Brian Dolan
07:09 am
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CardionetThe Wall Street Journal has an incendiary profile piece on the Jeffries analyst, Brian Kennedy, who predicted that Highmark CMS would cut its reimbursement rate for CardioNet's wireless cardiac monitoring  service. CardioNet is the only public company fully focused on wireless health, which makes it a true pioneer for the emerging industry.

While the aftermath that followed Kennedy's April prediction about the rate cut is an interesting read, perhaps even more important is the WSJ's closing remarks about the company itself:

"Mr. Thurman, in a recent interview, said the rate cut means CardioNet 'will not be able to sustain operations as a stand-alone company.' He says CardioNet is fighting to get the reimbursement decision overturned."

We had reported on the seemingly spurious rumors that Philips was eyeing CardioNet as an acquisition target a few months ago, but it appears that -- failing a reversal on the reimbursement decision -- CardioNet really will be courting bidders.

Be sure to read the entire WSJ article here. Or, for the full back story revisit our coverage of CardioNet and the reimbursement rate cut from earlier this year:

CardioNet founder Jim Sweeney explains importance of CPT codes
New billing codes for cardiac telemetry, Cardionet
CardioNet tries to quash reimbursement rate cut rumors
Report: CMS to cut CardioNet's reimbursement rate?
Sequoia Capital invests in CardioNet competitor, eCardio
CMS slashes CardioNet's reimbursement rate
CardioNet cancels Biotel acquisition agreement
Reimbursement rate cut takes effect in September
Rumor: Philips to acquire CardioNet?