However, after following Zynex since 2019, we've learned that insurers move slowly, especially large ones like UHC. Extended valuation might also be a reason why Sandgaard recently registered his 16.7M shares for potential sale. Based on discussions with CFO Dan Moorhead, who told us that UHC is Zynex's largest source of revenue, and the company's disclosures which note that two payors make up 37% of accounts receivable [Pg. Analysts Disclosure: I/we have a beneficial short position in the shares of ZYXI either through stock ownership, options, or other derivatives. At the MediChannel we provide you with guidance and strategies to overcome day to day challenges of health. Exhibit 8 - Severe reduction in UHC reimbursement per NexWave order. Free shipping. Also the form for my Dr. Please contact Patient Support at (720) 912-3415 or patientsupport@zynex.com No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Entering text into the input field will update the search result below. The risk of a repayment demand makes the recent announcement of a 10% cash and stock dividend seem ill-advised. Find Zynex Tens Unit faster ! challenging regulatory and reimbursement environment.. Operating margins, negative to slightly better than flat in the years prior, jumped to 38%. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. COMPEX Wireless Muscle Stimulator NEW.
Welcome to TENS Pros - Professional Pain Relief & Rehab This is if there is an adjustment for the screen lighting, it very bright. We apologize for any inconvenience this may cause and appreciate your patience. It lasts long and has no (or less) side effects. Over 10 months, the patient received 640 pairs of electrodes. Exhibit 6 - UHC policy change prohibits abusive coding by Zynex. Then out of nowhere the business improved. How to Set NexWave for Optimul Stimulation? overbilling." What this means is that: Low frequency = greater impedance (greater resistance), Higher frequency = lower impedance (lower resistance). Given the apparent lack of progress, we believe approval is unlikely in the medium term. Is this suitable for you at this time, or you may want the sacrum setting. A-b output will allow you to use it as 2 separate users. We didn't find any that do. Thats why my physical therapist sought solutions other than drugs to help relieve my pain and build up my atrophied muscle. To fund the purchase, he sold 1.25m Zynex shares two months prior.
Zynex Nexwave Portable Muscle Stimulation And Massage Bullish investors might point to payer inefficiencies being commonplace and that Zynex is merely exploiting the system. I am not receiving compensation for it. What is Transcutaneous Electric Nerve Stimulation (TENS)? The rep stated that patients and providers could receive the device for a $25 copay. How Do They Work? Zynex NexWave | Prescription Pain Management Tens Unit Products NexWave TM NexWave TM IFC, TENS & NMES in one device The NexWave incorporates IFC, TENS & NMES in one easy to use device. They are used for relieving pain from injuries, period pain, lower back pain, arthritis, fibromyalgia etc. How sustainable is a business model that resells commodity products for 10x retail prices, especially to a healthcare system increasingly focused on reducing costs? If Zynex initially bills using the E0730 code for a 4-lead TENS, insurers will typically allow reimbursement for two units of A4595 per month (vs one for E0720) - so Zynex is incentivized to use E0730. It's improbable that Zynex has the exclusive ability to source incredibly cheap batteries and electrodes and sole access to a captive market of commercial insurers. Zynex primarily markets NexWave, a transcutaneous electrical nerve stimulation (TENS) device indicated for the management of chronic intractable pain, post-traumatic and post-surgical pain. The electrodes are adhesive pads with wire attached at the ends. You may experience a tingling feeling or pin-pricks in the area that it is being utilized. Compared with IFC and TENS, the NMES is a bit more different. Is Ensure Max Protein Good For Diabetics? The Team consist of Medical Specialists, Doctors, Clinical Nurses, Health Technology Experts, Researches and Medical Writers. Copyright 2020 | All rights reserved by MediChannel.Org Australia. We thought payors, particularly commercial insurers, would have a better handle on waste and abuse, especially involving products as unproven and primitive as transcutaneous electrical nerve stimulation (TENS) units which are technologically on par with transistor radios. Yes, Zynex sells these same units online, an any needed supplies for less than rental costs. They deliver their impulses through electrodes. Injuries, muscle atrophy and other pain-inducing conditions often make one depend on opioids, muscle relaxants, over the counter drugs (OTC) etc. Then, beginning in 2017, supplies suddenly accounted for 80% of revenues and has remained at those levels since. Zynex nexwave tens. Benefits of Infrared Light Therapy for Diabetics, Review of doTERRA Essential Oils for High Blood Pressure, 10 Reasons Why Seniors Should Avoid Uridome Catheters, Transport Options For The Elderly and Disabled in Australia. Recall that Zynex says it collects around $1,500 per device, which implies $1,200 for supplies. For more, please visit https://themedichannel.com/zynex-nexwave-tens-unit-review/ This video reviewes the Zynex NexWave TENS Unit. Exhibit 1 - Supplies as percentage of revenue jumps in 2017Source: Financial statements. I am not receiving compensation for it (other than from Seeking Alpha). Heart conditions as this can lead to further complications, If you have the electrodes placed in the front of your neck or at the. This has an auto power-off function for saving the batteries ' power. The idea proved more resilient than we expected. EMSI was only billing for 8 pairs of electrodes per month per patient. Starting in the third month, Zynex can again bill with E0730 for the purchase and also start billing for monthly supplies. This is much safer, it will for excellent value and has a compact design. If UHC were to conduct a similar audit of Zynex claims, any overpayment demand is likely a multiple of $5m considering the quantity difference and that Zynex is larger than EMSI. Exhibit 5 - UHC patient claim before policy change: 64 pairs of electrodes covered. A TENS unit must be distinguished from other electrical stimulators (e.g., neuromuscular stimulators) which are used to directly stimulate muscles and/or motor nerves. Exhibit 12 - Excerpt of EMSI vs UHC lawsuit. Top subscription boxes right to your door, 1996-2023, Amazon.com, Inc. or its affiliates. This has internal batteries that can be recharged with the included charger. While Zynex may not be accounting for the policy in its financials, we think it's reducing its salesforce and adjusting investor communications in response to the change at UHC and for what we think is a workers' compensation industry stiffening its reimbursement protocol. Modern TENS technology, in use since the 1970s, operates on the same basic principle of applying electricity to areas of pain via percutaneous electrodes. Notice the similarities between IFC, TENS and NMES? What is Zynex NexWave? You Can Relieve Back Pain With TENS Units. The device is made to be portable and can be used at home, work etc.How to Take Zynex Treatment? I wrote this article myself, and it expresses my own opinions. Insert the lead wires (black and grey) in the area located on top of the device. I have no business relationship with any company whose stock is mentioned in this article. And after looking at the implied dollar amounts of supplies sold per device, we find it difficult to come up with scenarios in which Zynex isnt engaged in overly aggressive and/or abusive pricing. Batteries and electrode supplies are included in the E0730 rental fee. His Premier League aspirations will require copious funding underwritten by unwitting Zynex shareholders. However, you can choose electrodes with hypoallergenic adhesive pads. IFC, TENS and NMES (EMS) technologies and home-based innovations usually come in a portable form. The battery compartment on the back of this device opens by sliding the cover downwards. Long press it until the desired mode is achieved (look at the display screen). However, the FDA has repeatedly asked for additional information and data. When I had an accident that resulted in the paralysis of one side of my body, I thought it was the end of my world. For supplies, Zynex should be using code A4595 which includes one month of supplies for a 2-lead TENS unit. The companys pipeline consists of a blood volume monitor called CM-1500, for which an application for approval was filed in 2015. If you have an ad-blocker enabled you may be blocked from proceeding. It didn't help him and actually caused him more pain. The workers' compensation market might be the last area where the TENS business is feasible, due to an arcane and poorly controlled reimbursement and coding framework. After two months, concerned about their co-pay obligation the patient reported the excessive quantities to UHC which flagged the patient's file and led to denials of 4 of 8 submitted claims. Check with your insurance CO to see if they will even cover a rental. Also noteworthy was the abnormal amount of discussion on the Q3 call devoted to the so-called Blood Volume Monitor, a product that received FDA clearance in February 2020 yet has generated zero sales. Any meaningful order growth will likely come at the expense of margins as the average reimbursement per order turns loss making. Request a Demo 14 Day Free Trial Buy Now HCPCS Code Range E0720-E0770 E0720-E0770 Stimulation Devices E0720 Event Date 01/20/2014. Though we have a variety of recommendations across various styles, all of our picks satisfy criteria that suit most people, thereby reducing the confusion of choice.
Amazon.com: Zynex However, the Zynex spokesperson disputed this, saying that "E1399 is an accurate procedure code to be used with our NexWave device. Not only will Zynex lose revenue - it's margins will be materially impacted. While our checks with workers' comp investigators indicate the industry is tamping down on Zynex's abusive billing tactics, our focus here is on UHC and its new policy which we think will render the business unviable in its current form. We think the large receivables and DSO increases are at least partly due to lower collections from UHC, and that Zynex hasn't yet changed its revenue assumptions to account for the policy. . Zynex simply orders 9-volt alkaline batteries and cloth electrodes from outside manufacturers, who produce these commodities as private-label products with Zynex packaging. What is Neuromuscular Electrical Stimulation (NMES)? Therefore, medical devices that incorporate technologies such as neuromuscular electrical stimulation (NMES), interferential current (IFC) or transcutaneous electrical nerve stimulation (TENS). Amazon.com: Zynex Electrodes Shop Memorial Day sale 1-16 of 248 results for "zynex electrodes" Results TENS Unit Pads, 40PCS Round Electrodes Pads, 1.25" Reusable Carbon Electrotherapy Pads for EMS Muscle Stimulator, with 2.0 mm Pigtail Connectors 40 Count (Pack of 1) 684 $1599 ($0.40/Count) Sandgaard hinted at this during the Q4 2017 call in response to a question about the increase in supplies revenue (bold emphasis added): "And then we have also seen that there are some insurance plans that actually allow for more supplies than we have, we've been able to negotiate in the past. How does it work? Despite the risks inherent in Zynex, the companys market capitalization has soared 70x in the past 2 years. Risks to the upside include positive developments on the Blood Volume Monitor, faster than expected revenue growth, and continued abnormal reimbursement for excessive electrode quantities at UHC. Sandgaard most recently tapped his shares in August 2021 ahead of the league's transfer deadline. Earlier this year, the stock was. Please contact patient support at (800) 495-6670 or (720) 779-0218 to discontinue monthly supplies. The easyhome Zynex ten unit is perfect for relief of pain, is programmable, it's simple to set and has a wireless design. In theory, TENS stimulates sensory . Early effects of the new policy are evident in Q3 accounts receivable which rose by $5.9m Q/Q vs an increase in revenue of $3.8m. Instead, the insurer negotiated reimbursement rates and allowable supplies with manufacturers ad hoc. So, the penalty for Zynex could go beyond reduced future reimbursements and include liability for past profits.
This is rechargeable and the battery has already lasted for 4 days with no recharge. Using Medicare's fee schedule, our estimate of commercial insurance reimbursement and our work on UHC, we estimate reimbursement by payor and worker's comp orders which we think lie somewhere in the middle: Exhibit 9 - Estimated average reimbursement per order by payor. Long press it until the desired mode is achieved. The Techcare Massager Zynex Nexwave Ten Unit works wonderfully, is great with great packaging, It works quickly and has a lightweight design. It comes with 9 pre-programmed modes for the best experience. Long press it until the desired mode is achieved. How to Take Zynex Treatment? Where should a structurally unprofitable, one product, no (meaningful) pipeline, growth challenged company trade? We notified Zynex of our concern that its billing practices are abusive as the company is overcharging healthcare payers for device supplies. Even if we are wrong, and Zynex billing practices are industry standard and sustainable, competition would enter the TENS market given the ~90% gross margins on supplies, cutting profitability. The first two codes are for the device itself, the bottom three for supplies:Source: CMS. Private competitor EMSI, roughly half the size of Zynex in terms of employees and revenue, is a model of where Zynex potentially goes from here. The batteries and electrodes sold by Zynex are not proprietary to NexWave. This was confirmed when a UHC insured patient sent us Zynex claims information. It is expensive. Patients in the market for a TENS device have an abundance of options: FDA lists around 75 approved units and dozens of over-the-counter options are available on Amazon. Interested in sharing investment ideas (long and short) and engaging with other investors. thank you This little unit is worth the small price of admission. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. Its at least partially government mandated with prices set by healthcare bureaucracies with a goal of supporting public interests. Those popular questions and more are what we will be answering in this review article. Current outstanding share count is 34M, of which 1.5M are options with strike prices below $1. Traditional Chinese Medicine for Anxiety and Panic Attacks Does It Work? I am not receiving compensation for it. In our opinion, the model is unsustainable and a major risk unaccounted for in Zynexs premium valuation. This device is found to be better than opioids or any other pain relief drugs. Sandgaard owns around half of the outstanding shares. archaic TENS unit yet revenue per order nearly tripled . Its noteworthy that Zynex doesnt hold any patents for NexWave, likely because its based on technology that is several decades old.