Zoll

"The decision highlights that wearable defibrillator therapy delivers both the quality of patient care and the economic value that payers are seeking," Zoll Chief Executive Richard A. Packer said Thursday.

Medicare Coverage Reaffirmed for Zoll Device Mia Lamar 2011

The analysts note the device is of critical importance to Zoll as it now makes up more than 20% of the company's total revenue.

Medicare Coverage Reaffirmed for Zoll Device Mia Lamar 2011

"While we remain optimistic that it is unlikely LifeVest reimbursement gets cut for a significant amount of indications, it does highlight a key risk for Zoll," he said.

Zoll's LifeVest May Face Reimbursement Revisions Corrie Driebusch 2011

Zoll Medical Corp. said the Centers for Medicare & Medicaid Services reaffirmed coverage for the medical-device maker's wearable defibrillator, a disclosure that gave shares a sharp lift Thursday.

Medicare Coverage Reaffirmed for Zoll Device Mia Lamar 2011

Still, the potential changes to coverage and reimbursement reveals a potential head wind for the fast-growing and high-margin business line for Zoll, Mr. Zable said.

Zoll's LifeVest May Face Reimbursement Revisions Corrie Driebusch 2011

In a filing Monday with the Securities and Exchange Commission, Zoll said a proposal—which covers automated external defibrillators and wearable defibrillators—would limit the indications for Medicare reimbursement for the LifeVest product.

Zoll's LifeVest May Face Reimbursement Revisions Corrie Driebusch 2011

Zoll said LifeVest sales jumped 67% in the third quarter and totaled $79 million for the first nine months of fiscal year 2011, comprising more than 20% of net company sales.

Zoll's LifeVest May Face Reimbursement Revisions Corrie Driebusch 2011

Shares of Zoll tumbled 27% to $44.46 in 4 p.m. trading Monday on the Nasdaq Stock Market, less than a week after the stock touched an all-time high of $70.82.

Zoll's LifeVest May Face Reimbursement Revisions Corrie Driebusch 2011

Zoll Medical Corp. said its wearable resuscitation device LifeVest faces the possibility of reduced reimbursement rates.

Zoll's LifeVest May Face Reimbursement Revisions Corrie Driebusch 2011

While discussing fourth-quarter results last month, Mr. Packer said that Zoll's North America defibrillator business appeared to be gaining traction on top of continued strong shipments internationally.

Medicare Coverage Reaffirmed for Zoll Device Mia Lamar 2011