Zynex, Inc. announced that it received an update from Tricare confirming the continuation of the temporary payment suspension. The company had previously appealed the suspension and met with Tricare officials in April, presenting data and evidence to support lifting the hold. However, Tricare decided to maintain the temporary suspension to conduct further review before making a final decision.
This ongoing suspension impacts a significant portion of Zynex's annual revenue, as Tricare historically represented approximately 20-25% of the company's sales. The continuation of this payment hold prolongs financial uncertainty for Zynex. The company continues to support both existing and new Tricare patients as directed, incurring costs without immediate reimbursement.
Thomas Sandgaard, President and CEO of Zynex, stated that the temporary payment suspension will continue until Tricare makes its final decision. This development means Zynex must continue to navigate the financial implications of this major payer issue while awaiting a definitive resolution.
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