IRTC - iRhythm gets first downgrade after stock plunges on lower reimbursement rates

iRhythm Technologies (IRTC) was cut to neutral from overweight at JPMorgan after the shares plunged 38% as Novitas published updated reimbursement codes for a heart monitoring device that were materially below investors expectations.The Novitas new rates are "highly disappointing" and there's unlikely to be a favorable resolution in the near term, JPMorgan analyst Robbie Marcus wrote in note.  He cut the PT to $95 from $215."Unfortunately logic didn't prevail, and the new reimbursement rates of $100-$115 make in unprofitable to service Medicare patients," Marcus wrote.iRhythm earlier said in a statement that it won't provide its Zio XT service to the Medicare fee for service segment if the rates remain unchanged. iRhythm said it's preparing an operating plan to discontinue serving the Medicare segment with Zio XT that it expects to begin implementing in 2Q."The problem is that the near-term is uncertain, and we don't have a high degree of confidence that Medicare will

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iRhythm gets first downgrade after stock plunges on lower reimbursement rates