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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: scott_jiminez who wrote (1958)	11/6/2000 9:40:01 AM
From: Biomaven	Read Replies (1) \| Respond to of 52153

<<HDI>> I would feel safe in assume they've established a cost effective mechanism for reimbursement. I am unaware if this mechanism will translate into the US health care system. It doesn't. Getting good reimbursement in the US is a long and tortuous process, with obtaining a HCFA reimbursement code as a key initial hurdle. In general, adoption rates for this sort of device are agonizingly slow, even with compelling cost-effectiveness arguments and a strong marketing partner. There are often perverse incentives in the US healthcare system - sometimes cheaper and more efficient means less for doctors and hospitals... Peter

To: scott_jiminez who wrote (1958)	11/6/2000 11:42:40 AM
From: Mark Bong	Read Replies (2) \| Respond to of 52153

Scott, I raised these questions, because the answers need to be ascertained. I follow CDIC, which has a noninvasive homodynamic monitoring system, and the issues between HDII and CDIC appear to be similar. I would suggest that you read the Yahoo CIDC board as well as the CDIC press releases, and you will see how these issues arise and what they mean. My impression is that HDII has an approval for a product, but they have a long way to go to establish the business objectives that will enable their product to sold successfully and profitable in the marketplace. For instance, CDIC has a marketing agreement with GE to incorporate their product into GE's hospital monitoring systems. If my memory serve me correct, GE has 25% on the US share for hospital CC monitoring systems. CDIC is also negotiating with Agilent, which has 60% of this market. GE is selling the CDIC product, and has committed to market a module with CDIC's system included. This will translate into sales and profits, and hence stock appreciation. In addition, the reimbursement from HCFA provides a per treatment rate that is profitable for both CDIC as well as the hospitals/docs that use this equipment in hospitals/offices respectively. As Peter indicated, obtaining this rate is a lengthy and difficult but necessary process. Good Luck