BioTelemetry acquires Biomedical Systems' cardiac patient business for $8.65M BioTelemetry has entered into a definitive agreement to acquire the cardiac patient services business of Biomedical Systems for aggregate consideration of $8.65M at closing. Post integration, the acquisition is expected to generate $8.0M-$9.0M in revenue and $2.5M-$3.0M in EBITDA on an annualized basis. The transaction is expected to close in early April.
BioTelemetry announces finalization of settlement with DOJ BioTelemetry announced the completion of the Department of Justice investigation with the signing of a settlement agreement between the two parties. Per the agreement, BioTelemetry will pay $6.4M to the Department of Justice, which was reflected in the company's 2014 financial statements. The settlement relates to allegations that BioTelemetry encouraged physicians to use two non-specified diagnosis codes to ensure coverage of mobile cardiac telemetry between November 2008 and June 2011. It is the company's belief that physicians utilized these non-specified codes for palpitations, a diagnosis that was permitted under the local coverage determination but for which no corresponding diagnosis code was provided. On June 29, 2011, Medicare eliminated this ambiguity by adding a specific diagnosis code for palpitations and removing the two non-specified diagnosis codes.