MiMedx comments on proposed Medicare reimbursement rule changes

“We welcome and support improvements to Medicare’s reimbursement of skin substitutes across all care settings. The proposed rule, which was published yesterday afternoon, calls for a move away from the ASP methodology in favor of a fixed price per square centimeter of $125.38 for all skin substitutes. While many may take issue with the proposed price, reform in this category is long overdue,” stated Joseph Capper, CEO “The skin substitute market has experienced a proliferation of unsavory business practices over the last several years, as referenced in several recently announced enforcement actions. Under the current reimbursement methodology, the 2024 Medicare spend for skin substitutes in the private office and associated care settings had ballooned to nearly $10B up from approximately $1.5B in 2022. Reimbursement reform that restores rational market behavior and diminishes fraud, waste and abuse will serve to benefit stakeholders, taxpayers and, most importantly, patients. We look forward to providing our perspective and recommendations to CMS during the upcoming comment period, which concludes on September 13, 2025. As always, we remain focused on supporting our customers and their patients as they navigate this evolving landscape. Importantly, MIMEDX (MDXG) is well-positioned to excel in an environment in which product capabilities, supported by robust clinical evidence, determine selection and usage. The recently announced Wasteful and Inappropriate Service Reduction model, the pending Local Coverage Determinations, and now the PFS rules are all set for implementation on January 1, 2026. We plan to discuss this topic in more detail on our upcoming second quarter earnings call.”