Jun 8, 2000
Guidant Supports the President's Plan to Reimburse Routine Patient Care Costs for Medicare Beneficiaries in Clinical Trial

Indianapolis, IN - Guidant Corporation (NYSE and PCX: GDT), a global leader in the medical technology industry, commends President Clinton''s Executive Memorandum taking the first step toward ensuring appropriate Medicare coverage for beneficiaries who participate in clinical trials.

"We applaud the administration''s efforts toward promoting patient access to breakthrough medical technologies through clinical trials," commented Ronald W. Dollens, Guidant President and Chief Executive Officer. "Guidant is at the forefront of developing clinical innovations in areas such as heart failure and intravascular radiotherapy that have the potential to save and improve the lives of thousands of American seniors. By removing the barriers to participation, hopefully more Medicare beneficiaries will participate in these essential trials fostering medical innovation."

The Executive Memorandum issued by the President on June 7, 2000 directs the Health Care Financing Administration (HCFA), which administers the Medicare program, to revise its payment policy and immediately begin to explicitly reimburse providers for the cost of routine patient care associated with participation in clinical trials. Further, it directs the organization to take additional action to promote the participation of Medicare beneficiaries in clinical trials for all diseases. According to the Executive Memorandum, research shows that only about one percent of American seniors participate in clinical trials, although the elderly bear the majority of the disease burden in the United States. The uncertainty associated with Medicare reimbursement often deters patients from participating in these trials, and deters physicians and other clinicians from recruiting patients, contributing to low participation rates and slowing the development of new medical treatments and diagnostic tests that could benefit the entire Medicare population.

"We look forward to working with the Department of Health and Human Services and HCFA to further explore and define this issue, as well as ensure that mechanisms are put in place to provide appropriate reimbursement schemes once these innovative technologies receive approval from the U.S. Food and Drug Administration," continued Dollens.

A global leader in the medical technology industry, Guidant Corporation provides innovative, minimally invasive and cost-effective products and services for the treatment of cardiovascular and vascular disease. For more information on Guidant''s products and services, visit the company''s web site at http://www.guidant.com.