MIMEDX's Advocacy to Rein in Runaway Medicare Spend for Skin Substitutes Has Yielded Significant Results with Planned Implementation of LCDs

Core Viewpoint - The revised Local Coverage Determinations (LCDs) will no longer cover over 200 unproven skin substitutes, emphasizing the need for clinically effective and proven products in the wound care industry [1][2]. Group 1: Changes in LCDs - The number of separate treatment applications a patient can receive has increased from 4 to 8 [1]. - Treatment duration has been extended from 12 to 16 weeks [1]. - The Medicare Administrative Contractors (MACs) require well-powered, peer-reviewed clinical evidence for reimbursement [1]. Group 2: Industry Context - The wound care industry has seen a significant increase in spending, now exceeding $1 billion per month, which is over a 20-fold increase in the past five years [2]. - The MACs' actions are viewed as a corrective measure to address reimbursement abuses in the industry [2][3]. Group 3: Company Position - MiMedx Group, Inc. has two allografts, EPIFIX® and EPICORD®, on the list of covered products, positioning the company to benefit from the revised LCDs due to strong clinical evidence supporting its products [4]. - The company aims to restore order and good fiscal governance to the Medicare outpatient reimbursement system while ensuring patient access to clinically proven solutions [3]. Group 4: Company Overview - MiMedx is a leader in providing healing solutions for chronic and hard-to-heal wounds, with a vision to be the leading global provider through relentless innovation [5].