CRH Medical (CRHM) says the Centers for Medicare and Medicaid Services' (CMS) proposed 2018 fee schedule for anesthesia could trim its anesthesia revenue by 8.5%, its total revenue by 7.5% and its non-GAAP EBITDA by 13.5%. Non-GAAP EBITDA margin would be cut 6% to 47%.
CMS plans to replace the existing billing code with two new ones related to anesthesia provided with a lower endoscopy procedure.
CEO Edward Wright shrugs off the negative development saying, "If the new billing codes go into effect as currently proposed, we anticipate that our business will continue to generate strong adjusted operating EBITDA margins of approximately 47%. Our focus continues to be growing our business through acquisitions and organic growth, which will be funded from our cash flow from operations and existing credit facility."