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Heart-Monitor Stock Faces Medicare Reckoning After 235% Rally

  • IRhythm shares could move on regional reimbursement updates
  • Zio system has made company a battleground for bulls and bears

IRhythm Technologies Inc., which has drawn the wrath of short sellers as shares have more than tripled this year, could receive key reimbursement decisions in coming weeks that will shape its sales.

Regional contractors that work with the U.S. government to decide how much IRhythm will be reimbursed for use of its products are expected to weigh in, after the Centers for Medicare & Medicaid Services updated its coding at the start of this month. The Medicare administrative contractors, or MACs, may cut reimbursement levels related to the company’s Zio heartbeat-monitoring patch, which would deal a blow to the stock’s boosters.