Business Context and Reporting Period
This Form 8-K was filed by Second Sight Medical Products, Inc. on November 2, 2016. The report addresses regulatory and reimbursement milestones for the Company's Argus II retinal prosthesis system.
Key Financial Metrics
The filing does not provide specific financial statements, revenue, profit, cash flow, or debt figures. The primary financial metric disclosed is the final Centers for Medicare & Medicaid Services (CMS) Hospital Outpatient Payment rate for the implantation of the Argus II retinal prosthesis for calendar year 2017, set at $150,000.50.
Material Changes
- Reimbursement Rate: Finalization of the 2017 CMS payment rate for Argus II implantation at $150,000.50.
- Coding Expansion: The American Medical Association (AMA) CPT Editorial Panel approved two new Category III CPT codes for initial programming and subsequent reprogramming of the Argus II.
- Operational Impact: These new codes allow clinicians to report and bill for all services related to implantation and programming, whereas previously only the implantation procedure had a Category III CPT code.
Guidance, Outlook, and Management Commentary
Management highlighted that the new CPT codes will be published on January 1, 2017, with clinicians able to begin reporting them on July 1, 2017. The filing indicates a positive outlook for billing completeness regarding the Argus II system, enabling full service reporting for implantation and post-operative programming.
Investor Verification Checklist
- Verify the effective date of the new CPT codes (July 1, 2017) for billing implementation.
- Confirm the specific CPT code numbers assigned for initial and subsequent programming.
- Assess the impact of the $150,000.50 reimbursement rate on projected revenue for 2017.
- Review the full text of the press release (Exhibit 99.1) for additional details on market adoption.