Abiomed shares should rally on final IPPS rates, says Piper Jaffray
The final inpatient prospective payment system rates were issued by the Center Medicare & Medicaid Services that go into effect on October 1 late last Friday, Piper Jaffray analyst Matt O'Brien tells investors in a research note. Overall, the rates were cut a little more than they were in 2019 based on relative values, adds the analyst. However, the "clear surprise" from the final rates, according to O'Brien, was diagnosis-related group 215 was unchanged compared to 2019 following a proposed cut of about 27% earlier this year. This code is where most Impella cases are charged to, so the update on Friday will likely be viewed favorably for Abiomed, says the analyst. He expects the stock to rally Monday on the news and keeps an Overweight rating on the name.