Organogenesis ‘pleased’ with CMS proposal on skin substitute

Organogenesis (ORGO) said it “applauds” the Centers for Medicare and Medicaid Services’ proposed new payment approach for skin substitutes and tissue-based products under the 2026 physician fee schedule. The company “urges” CMS to establish 2026 payment rates based on clinical value and relative cost. “We are pleased CMS is proposing a per centimeter square payment methodology based on FDA classification for skin substitutes in both the physician office and hospital outpatient department settings,” said Gary Gillheeney, CEO of Organogenesis. “We believe this new payment structure will curb abuse under the current system, and the resulting rapid escalation in Medicare spending, while ensuring a much-needed consistent payment approach across sites of care. We are also pleased CMS has recognized the clinical differentiation of PMA products and has taken steps to expand access to these innovative wound healing technologies to ensure patients receive the most appropriate therapy, which have been proven to reduce life-threatening amputations and complications.” Shares of Organogenesis are down 12% to $3.95 in premarket trading.