CRH Medical comments on estimated impact of CMS proposed fee
CRH Medical commented on the estimated impact of the Center for Medicare and Medicaid Services, or CMS, proposed fee schedule for 2018. The CMS 2018 Medicare Physician Fee Schedule Proposed Rule was announced on July 13 and updates payment policies, payment rates, and other provisions for services furnished under the Medicare Physician Fee Schedule on or after January 1, 2018. The Proposed Rule changes the billing structure for CRH's primary billing code for anesthesia provided in conjunction with a lower endoscopy by eliminating the existing billing code and replacing them with two new billing codes. The new billing codes will have the net effect of decreasing the amount CRH will likely bill and collect for anesthesia services provided in conjunction with a lower endoscopy. At this point, the Company expects that the new billing codes will be adopted by all commercial and federal payors effective January 1, 2018. The Company has analyzed the impact of the new codes on its business and has determined that if the new codes were implemented today as currently proposed, anesthesia revenue would decrease by approximately 8.5% and total revenue would decrease by approximately 7.5%. In addition, total adjusted operating EBITDA would decrease by approximately 13.5%. We believe that this would decrease our total adjusted operating EBITDA margin from 53% to approximately 47%.