May 12, 2003
CMS Recommends Guidant Proposal for New DRG for Heart Failure Patients
Establishment of New DRG 535 is Milestone in Advancement of Heart Failure Therapy
Indianapolis, Ind. and St. Paul, Minn. - Guidant Corporation (NYSE: GDT), a world leader in the treatment of cardiac and vascular disease, today announced that the Centers for Medicare and Medicaid Services (CMS) has recommended approval of Guidant''s proposal to create a new Diagnosis Related Group (DRG) for heart failure patients. The proposed new DRG 535 will be used for patients who qualify for an implantable cardioverter defibrillator (ICD) as the result of an electrophysiology study who also suffer from heart failure. The new DRG provides higher reimbursement to better manage patients with difficult co-morbidities and is included in proposed hospital inpatient payment rates for fiscal year 2004, issued by the CMS late Friday, May 9, 2003.
"We applaud efforts by the CMS to bring Guidant''s proposal forward with a recommendation for approval," said Fred McCoy, president, Cardiac Rhythm Management, Guidant. "Ensuring that hospital reimbursement rates are aligned with overall resource requirements for treating patients with heart failure is very positive for patients who need hospital services, including new device technologies. Guidant worked with CMS during the past two years to make new device-based therapies available for aging patients who struggle with heart failure."
DRGs define payment rates for inpatient hospital services and are the cornerstone of the Medicare prospective payment system. The proposed hospital inpatient payment rates for fiscal year 2004 are subject to a 60-day public comment period. The final rule is expected to be issued in August and, if approved, will take effect on October 1, 2003. Complete proposed rates for fiscal year 2004 can be reviewed at http://cms.hhs.gov/.
Guidant Corporation pioneers lifesaving technology, giving an opportunity for better life today to millions of cardiac and vascular patients worldwide. The company, driven by a strong entrepreneurial culture of 11,000 employees, develops, manufactures and markets a broad array of products and services that enable less invasive care for some of life's most threatening medical conditions. For more information visit www.guidant.com.
About Guidant''s Leadership in Heart Failure Therapy
As a leader in technical innovation, Guidant is providing heart failure patients and the physicians who treat them with device-based solutions designed to extend and improve life. In May 2002, Guidant was the first company to receive approval in the United States to market cardiac resynchronization therapy defibrillators (CRT-D). Guidant is advancing clinical science by sponsoring landmark studies such as the Comparison of Medical Therapy, Pacing, and Defibrillation in Chronic Heart Failure (COMPANION) trial. Preliminary results of the COMPANION trial were presented at the American College of Cardiology (ACC) 52nd Annual Scientific Session in March 2003. Guidant sponsored clinical research and development in the area of heart failure continues to advance heart failure therapies and provide answers to critical clinical questions about long-term treatment outcomes for cardiovascular disease. Guidant continually works with government agencies, elected officials, physicians and patient advocacy groups to help ensure timely access to new technologies for the patients who will benefit from these medical innovations.
Heart failure is a debilitating condition that affects not only a patient''s quality of life, but also life expectancy. It is a disease in which the heart weakens and gradually loses the ability to pump blood effectively. More than six million Europeans and nearly five million Americans currently suffer from heart failure. Nearly one million new cases of heart failure are diagnosed annually worldwide, making it the most rapidly growing cardiovascular disorder.