Tricare Temporary Payment Suspension Update
Zynex (NASDAQ: ZYXI), a medical technology company focused on non-invasive medical devices, announced that Tricare, their largest insurance customer, will continue its temporary payment suspension. Despite appealing the suspension and meeting with Tricare officials in April to present data supporting the lifting of the suspension, Tricare has decided to maintain the temporary hold while conducting further review.
The company's CEO, Thomas Sandgaard, confirmed that the suspension will remain in effect until Tricare reaches its final decision. This development represents a significant challenge for Zynex, as Tricare is identified as their largest insurance customer.
Zynex (NASDAQ: ZYXI), un'azienda di tecnologia medica specializzata in dispositivi medici non invasivi, ha annunciato che Tricare, il loro pi霉 grande cliente assicurativo, continuer脿 la sospensione temporanea dei pagamenti. Nonostante l'appello contro la sospensione e un incontro con i funzionari di Tricare ad aprile per presentare dati a supporto della revoca della sospensione, Tricare ha deciso di mantenere la sospensione temporanea mentre prosegue la revisione.
Il CEO dell'azienda, Thomas Sandgaard, ha confermato che la sospensione rester脿 in vigore fino alla decisione finale di Tricare. Questo sviluppo rappresenta una sfida importante per Zynex, poich茅 Tricare 猫 il loro cliente assicurativo pi霉 grande.
Zynex (NASDAQ: ZYXI), una empresa de tecnolog铆a m茅dica centrada en dispositivos m茅dicos no invasivos, anunci贸 que Tricare, su mayor cliente de seguros, continuar谩 con la suspensi贸n temporal de pagos. A pesar de apelar la suspensi贸n y reunirse con funcionarios de Tricare en abril para presentar datos que respaldan el levantamiento de la suspensi贸n, Tricare ha decidido mantener la suspensi贸n temporal mientras realiza una revisi贸n adicional.
El CEO de la compa帽铆a, Thomas Sandgaard, confirm贸 que la suspensi贸n permanecer谩 vigente hasta que Tricare tome una decisi贸n final. Este desarrollo representa un desaf铆o significativo para Zynex, ya que Tricare es su mayor cliente de seguros.
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Zynex (NASDAQ : ZYXI), une entreprise de technologie m茅dicale sp茅cialis茅e dans les dispositifs m茅dicaux non invasifs, a annonc茅 que Tricare, leur plus grand client assureur, maintiendra la suspension temporaire des paiements. Malgr茅 un appel contre cette suspension et une r茅union avec des responsables de Tricare en avril pour pr茅senter des donn茅es soutenant la lev茅e de la suspension, Tricare a d茅cid茅 de maintenir cette suspension temporaire en attendant une r茅vision plus approfondie.
Le PDG de l'entreprise, Thomas Sandgaard, a confirm茅 que la suspension restera en vigueur jusqu'脿 la d茅cision finale de Tricare. Cette situation repr茅sente un d茅fi majeur pour Zynex, Tricare 茅tant leur plus grand client assureur.
Zynex (NASDAQ: ZYXI), ein Medizintechnikunternehmen, das sich auf nicht-invasive medizinische Ger盲te spezialisiert hat, gab bekannt, dass Tricare, ihr gr枚脽ter Versicherungskunde, die vor眉bergehende Zahlungsaussetzung fortsetzen wird. Trotz Einspruch gegen die Aussetzung und eines Treffens mit Tricare-Vertretern im April, bei dem Daten zur Unterst眉tzung der Aufhebung der Aussetzung vorgelegt wurden, hat Tricare beschlossen, die vor眉bergehende Aussetzung w盲hrend einer weiteren 脺berpr眉fung beizubehalten.
Der CEO des Unternehmens, Thomas Sandgaard, best盲tigte, dass die Aussetzung so lange in Kraft bleibt, bis Tricare eine endg眉ltige Entscheidung trifft. Diese Entwicklung stellt eine erhebliche Herausforderung f眉r Zynex dar, da Tricare als ihr gr枚脽ter Versicherungskunde gilt.
- None.
- Continued payment suspension from Tricare, the company's largest insurance customer
- Unsuccessful appeal to lift the payment suspension
- Uncertainty regarding the duration and final outcome of the suspension
Insights
Tricare's continued payment suspension to Zynex creates significant revenue uncertainty and potential cash flow challenges for the company.
Zynex has received concerning news that Tricare, its largest insurance customer, will continue its temporary payment suspension while conducting further review. This development comes despite Zynex's appeal and presentation of data during an April meeting with Tricare officials.
The continuation of this suspension is particularly troubling as it affects payments from Zynex's most significant revenue source. While the company hasn't disclosed the exact percentage of revenue derived from Tricare, the characterization as their "largest insurance customer" suggests this suspension could materially impact cash flow and near-term financial performance.
The language in the announcement 鈥� specifically that the suspension continues "until Tricare makes its final decision" 鈥� indicates significant uncertainty about the timeline and ultimate resolution. This open-ended situation creates considerable unpredictability for Zynex's financial planning and operations.
Most concerning is that despite Zynex's efforts to present their case, Tricare has determined additional review is necessary rather than lifting the suspension. This suggests potential underlying issues that warrant further investigation, though no specific allegations or concerns were detailed in the release.
The lack of additional context about the nature of Tricare's concerns or the potential financial impact creates an information gap for investors trying to assess the severity of this situation. Without knowing the specific compliance issues being investigated or the proportion of revenue at risk, it's difficult to fully quantify the potential impact on Zynex's financial stability.
"As we previously announced, we were notified of a temporary suspension of payments from our largest insurance customer, Tricare," said Thomas聽Sandgaard, President and CEO of Zynex. "We appealed the temporary suspension and met with聽Tricare officials in April where we presented our data and evidence as to why the payment suspension should be lifted. We received a response from Tricare, and they have decided to continue the temporary suspension while they conduct further review. As such, the temporary payment suspension will continue until Tricare makes its final decision."
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended. our results of operations and the plans, strategies and objectives for future operations; the timing and scope of any potential stock repurchase; and other similar statements.
Words such as "anticipate," "believe," "continue," "could," "designed," "endeavor," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "preliminary," "will," "would" and similar expressions are intended to identify forward-looking statements. The express or implied forward-looking statements included in this press release are only predictions and are subject to a number of risks, uncertainties and assumptions. Forward-looking聽statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because聽forward-looking聽statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company makes no express or implied representation or warranty as to the completeness of forward-looking statements or, in the case of projections, as to their attainability or the accuracy and completeness of the assumptions from which they are derived. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain CE marking of new products; the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources; the need to keep pace with technological changes; our dependence on the reimbursement for our products from health insurance companies; the outcome of the Tricare payment suspension; our dependence on first party manufacturers to produce our products on time and to our specifications' implementation of our sales strategy including a strong direct sales force, market conditions; economic factors, such as interest rate fluctuations; and other risks described in our filings with the Securities and Exchange Commission.
These and other risks are described in our filings with the Securities and Exchange Commission including but not limited to, our Annual Report on Form 10-K for the year ended聽December 31, 2024,聽as well as our quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statements contained in this press release represent Zynex's views only as of today and should not be relied upon as representing its views as of any subsequent date. Zynex explicitly disclaims any obligation to update any forward-looking statements, except to the extent required by law.
About聽Zynex, Inc.
Zynex, founded in 1996, develops, manufactures, markets, and sells medical devices used for pain management and rehabilitation as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals. For additional information, please visit:聽.
Investor Relations Contact:
Dan Moorhead, CFO
[email protected]
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