Organogenesis Applauds Findings from the Office of Inspector General
Transitioning all skin substitutes to ASP-based payments has the potential to substantially reduce Medicare Part B expenditures
CANTON, Mass., March 27, 2023 (GLOBE NEWSWIRE) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care and Surgical and Sports Medicine markets, applauds the findings by the Office of the Inspector General (OIG) of the U.S. Department of Health and Human Services (HHS) that transitioning all skin substitute products to average sales price (ASP) -based payments has the potential to substantially reduce Medicare Part B expenditures.
In the , entitled “Some Skin Substitute Manufacturers Did Not Comply with New ASP Reporting Requirements,” OIG concluded Centers for Medicare and Medicaid Services (CMS) could potentially save tens of millions of dollars per quarter if it uniformly used the ASP payment methodology for all skin substitutes.
“CMS has made progress in the last six months by expanding the number of skin substitutes that are being paid on the basis of ASP,” said Gary S. Gillheeney, Sr., President and Chief Executive Officer of Organogenesis. “Transitioning all skin substitutes to ASP-based payments should improve access to more efficacious treatment options such as human cell and tissue-based products (HCT/Ps), and according to the report, lower the cost to the Medicare trust fund.” Gillheeney added, “ASP-based payments are an important step in stabilizing the skin substitute market and creating a level-playing field. This complements the previous action by the FDA requiring certain injectable tissue products be taken off the market and proceed down a biologics license application (BLA) pathway.”
“Organogenesis is committed to providing access to our portfolio of products across the continuum of care – including physicians’ offices and strongly urges CMS to publish ASPs for all skin substitutes this year,” Gillheeney concluded.
About Organogenesis Holdings Inc.
Organogenesis Holdings Inc. is a leading regenerative medicine company focused on the development, manufacture and commercialization of solutions for the advanced wound care and surgical and sports medicine markets. Organogenesis offers a comprehensive portfolio of innovative regenerative products to address patient needs across the continuum of care.
Investor Inquiries: ICR Westwicke Mike Piccinino, CFA Press and Media Inquiries: Organogenesis Ron O’Brien
