Zynex NexWave TENS Unit Review Does The NexWave TENS Work For Pains? So, the penalty for Zynex could go beyond reduced future reimbursements and include liability for past profits. We've reported our concerns to Centers for Medicare and Medicaid Services, private insurers, and publications. This was confirmed when a UHC insured patient sent us Zynex claims information. $190.00. Notice the similarities between IFC, TENS and NMES? We became aware of the situation through a lawsuit filed by the competitor. The powerful massage offered by electrical stimulus is very strong and therapeutic. Check with your insurance CO to see if they will even cover a rental. Our ultimate goal is your health and happiness. Skeptics like us believed Zynex would eventually collapse, the only question was when. Zynexs CEO claims NexWave is the best device, but we are unaware of any clinical comparison study. What is Neuromuscular Electrical Stimulation (NMES)? It can be used both in the hospital and at home. This has internal batteries that can be recharged with the included charger. The TENS category includes the codes below (a few other codes are less commonly used so well ignore them). This is built with friendly customer service and it is ready to go. Interferential current or therapy is the use of electric current to stimulate nerves for the purpose of pain relief and other benefits. What is Zynex Nexwave Used For? However, unlike the consumer market for razor blades, the payer market for TENS supplies isnt free. Health & Wellness Health & Household Medical Supplies & Equipment $3499 ($34.99 / Count) FREE delivery Thursday, May 18. The companys pipeline consists of a blood volume monitor called CM-1500, for which an application for approval was filed in 2015. Click here We're hiring Visit Our Career Page to Learn More 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. Proven alternative for safe, effective home traction See product NMES E-Wave Easy-to-use NeuroMuscular Electrical Stimulator with unique features designed for high performance and a wide variety of options See product Stroke Rehabilitation NeuroMove Treatment and management of post-surgical pain in hospital and at home. Does The NexWave TENS Work For Pains? The idea proved more resilient than we expected. Earlier this year, the stock was uplisted to the Nasdaq Capital Market. Remember the story of David narrated at the beginning of this article? If you have an ad-blocker enabled you may be blocked from proceeding. Due to the egregious level of the overpricing during a time of increased focus on rising healthcare costs, we would not be surprised to see insurance companies begin to examine their reimbursement rates to Zynex in the near term. Reimbursement pressure is evident in accounts receivable which ballooned in Q3, outpacing revenue growth. The use of "unbundled" codes is a common method of fraud and abuse in healthcare billing. His Premier League aspirations will require copious funding underwritten by unwitting Zynex shareholders. 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. Do you want to discontinue your supplies? Days sales outstanding rose to highest level in over 4 years. This doesnt make sense, in our opinion. The Zynex NexWave is a good example and a lifesaver. This can gently relax stiff calfs or thighs in about 20 min. They are used for relieving pain from injuries, period pain, lower back pain, arthritis, fibromyalgia etc. Click here Private Pay Option To pay out of pocket, visit our online supplies store. Zynex could focus on pockets of high reimbursement, but this means becoming a much smaller company. Appreciate all feedback. At the MediChannel we provide you with guidance and strategies to overcome day to day challenges of health. 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. Insert the lead wires (black and grey) in the area located on top of the device. After the Centers for Medicare and Medicaid Services (CMS) instituted competitive bidding in 2015, slashing Medicare reimbursements for TENS, public reimbursement policy has remained weak. Obviously it doesn't hurt to have the uncapped potential for making a great chunk of dough. Last year, Zynex posted sales and EPS growth of 36% and 22%, respectively. In 2014, Zynex itself noted how difficult the TENS business was becoming due to the impact of Medicare reform, highlighting that, in 2012, Medicare ended coverage for TENS for lower back pain, and continued increasing the paperwork and documentation requirements for reimbursement. After a doctor prescribes NexWave, Zynex verifies Medicare/insurance. Compex Easy Snap Electrodes 2 x 4 Inch for Edge, Performance, Sport Elite, Wireless Muscle Stimulators - 5 Pack (10 Electrodes) - Black, 5 Count (Pack of 2), reserv 2" Round Premium Re-Usable Self Adhesive Electrode Pads for TENS/EMS Unit, Fabric Backed Pads with Premium Gel (White Cloth and Latex Free) (20 Electrodes). We dont know of another public medical device company generating the vast majority of its revenue by reselling non-proprietary consumables (simple 9-volt batteries and electrodes in this case) at egregious ~90% margins. It comes with the following accessories: electrodes, lead wires, AC adapter. From our understanding, the purchase price is reimbursed at the same rate as the rental. If you would like to complete your order online, visit us at www.zynex.com/ship. ZYNEX Medical NexWave TENS IFC NMES Kit Unit With Accessories Electrodes. Sounds ok right? UHC did not have an official TENS coverage policy until recently. Any meaningful order growth will likely come at the expense of margins as the average reimbursement per order turns loss making. Zynex was offering the same unpatented, archaic TENS unit yet revenue per order nearly tripled from 2016 to 2017 - suddenly the business was profitable. Assuming the new policy cuts UHC reimbursement per order by 80%, depending on how much UHC makes up of current revenue, it's possible Zynex will be left unprofitable going forward (Exhibit 11). Page 4: Contact Information. For NMES treatment, press the NMES button. In September 2018, after conducting an audit of EMSI claims, UHC demanded EMSI stop billing for individual pairs of electrodes and to instead use the bundled supply pack code. To stem losses Zynex will be forced to cut staff significantly and reduce non-profitable orders from Medicare and most commercial health insurers. Exhibit 12 - Excerpt of EMSI vs UHC lawsuit. Zynex Medical Inc. is part of three subsidiaries of the company founded in 1996 by Thomas Sandgaard. Durable Medical Equipment (DME) or questions about an Explanation of Benets form you received in the mail FAX NUMBER 800-495-6695 303-347-9153 MAILING ADDRESS Zynex Medical, Inc. 9555 Maroon Circle Englewood, CO 80112 EMAIL info@zynex.com WEBSITE www.zynex.com EUROPEAN REPRESENTATIVE. The policy stipulates "usual maximum utilization" is one or two units of a monthly supply pack which includes electrodes, batteries, and conductive gel. This comes with pain reliever, is very big and it allows for a nice storage bag. Please. Or maybe the dollar amounts have remained small enough to this point and thus havent triggered scrutiny. For a fresh prespective, we also asked friends with different backgrounds to tell us what they thought about the finalists. The Team consist of Medical Specialists, Doctors, Clinical Nurses, Health Technology Experts, Researches and Medical Writers. Event Description. What is Zynex NexWave? In addition, UHC reduced the allowable quantity of electrodes per patient from 8 pairs to 4 pairs per month (2 supply packs). The HCPCS codes range Stimulation Devices E0720-E0770 is a standardized code set necessary for Medicare and other health insurance providers to provide healthcare claims. We find it difficult to back into Zynexs stated revenue per device. It doesn't make sense. These higher frequencies can penetrate the skin and cause fewer discomfort or pain. I am not receiving compensation for it. However, after following Zynex since 2019, we've learned that insurers move slowly, especially large ones like UHC. Injuries, muscle atrophy and other pain-inducing conditions often make one depend on opioids, muscle relaxants, over the counter drugs (OTC) etc. Skeptics like us believed Zynex would eventually collapse, the only question was when. A prescription only 3-in-1 modality device with IFC, TENS, and NMES, Proven alternative for safe, effective home traction, Easy-to-use NeuroMuscular Electrical Stimulator with unique features designed for high performance and a wide variety of options, Assists in teaching healthy parts of the brain after a stroke to take over lost functionality through Neuroplasticity, Patented ATC Measures and regulates temperature to provide therapeutic hot and cold therapy without manual adjustment, Delivers a nonsurgical, drug-free therapy that offers a conservative treatment to manage incontinence. Analysts Disclosure: I am/we are short ZYXI. For supplies, Zynex should be using code A4595 which includes one month of supplies for a 2-lead TENS unit. However, the financial statements reveal a curious shift in the composition of Zynex revenues around this time. That no other public medical device company operates with a similar high margin reseller model for the overwhelming majority of its revenues should prompt questions from Zynex shareholders and it could also draw the attention of regulators. These three proven modalities have been used for over 30 years to help patients manage their pain symptoms. This fits perfect with easy directions and it goes up. I paid the copay . We believe this includes two batteries and two 4-packs of electrodes. Zynex has been a micro-cap for most of its existence as a public company. We think the end is in sight. We think the multiple range is appropriate considering our stalled growth forecast, remaining reimbursement risk, and possibility of UHC overpayment clawbacks and accounts receivable write-downs. This is great for loosening up tight muscles and for muscle pain. How to Take Zynex Treatment? It comes with 9 pre-programmed modes for the best experience. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. Modern TENS technology, in use since the 1970s, operates on the same basic principle of applying electricity to areas of pain via percutaneous electrodes. Below is a screenshot of part of our complaint to the OIG. Then, beginning in 2017, supplies suddenly accounted for 80% of revenues and has remained at those levels since. For IFC treatment, press the IFC button located in front of the device. This takes a beating, it works well for a low price and has a convenient design. I will give this device a 4.0 star our of 5.0. The first two codes are for the device itself, the bottom three for supplies:Source: CMS. Sandgaard bought the English football club Charlton Athletic in September 2020. I have no business relationship with any company whose stock is mentioned in this article. Overvaluation may be a reason why institutional ownership is only 12% and almost entirely made up of index trackers (stock was added to the Russell 2000 in July 2019). The channel button is used to increase or decrease the intensity of treatment. Serious EFL fans scoff (the British press has referred to Sandgaard as a cross between Bon Jovi and the fictional character David Brent from the mockumentary The Office), but what's important is that Sandgaard's dreams will require a lot of money and most of his wealth is tied to his 43% stake in Zynex. Need Help? Pain Relief Devices: TENS 3000 vs. TENS 7000. Batteries and electrode supplies are included in the E0730 rental fee. | IndicationsSince Zynex Nexwave integrates varieties of modalities like IFC, NMES and TENS, its used for the management of following medical conditions. Treatment of post-traumatic pain in hospitals and at home. Treatment and management of post-surgical pain in hospital and at home. Promoting blood circulation, and hence stimulating healing. To support physical therapy Preventing muscle degeneration or building up of degenerated or atrophied muscles in paralysis etc.How to Set NexWave for Optimul Stimulation?Its covered in this video.When Should You Not Use Zynex NexWave?You are not to use Nexwave under the following conditions or in the following areas. Have pacemakers, defibrillators implanted in your body. Pregnancy Heart conditions as this can lead to further complications If you have the electrodes placed in the front of your neck or at the carotid sinus. To place on your head or transcerebrally. Electrodes should not be placed on the swollen, infected area of skin or on any skin conditions.Do You Need a Prescription for NexWave?Yes, you do need a prescription to use this product.Thats because a doctor needs to diagnose your condition and also make sure that you will not suffer complications that are avoidable from the use of this product. We identify UnitedHealthcare as Zynexs largest payor and estimate it was paying ~7x more per order relative to other commercial insurers, artificially sustaining the weak underlying business. Sandgaard attributed the apparent turnaround to the loss of competition and increased billing and collection efficiencies. Zynex also sells InWave for incontinence and NeuroMove for stroke rehabilitation, but sales of both are insignificant. This can be used at a faster or slower speed. 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. Sandgaard owns around half of the outstanding shares. What is Zynex NexWave? Is it safe? Evidence supporting TENS efficacy is mixed and inconclusive mainly due to a lack of randomized controlled trials. Interested in sharing investment ideas (long and short) and engaging with other investors. This features, is very well made and it does everything it says it does. However, we believe Zynex is dependent on an abusive pricing strategy - reselling regular consumer batteries and electrodes at ~90% margins. If Zynex is in fact billing properly, we would expect competition to enter the space soon, pressuring margins. Recall 80% of revenues now comes from supplies, so roughly $300 is collected for the device and $1,200 from supplies over the course of six to nine months, on average. Overall, it's decent. The firm provides you with the tools to succeed and has a great help staff in Denver. 16], we think UHC may account for only 2-5% of orders, but 10-25% of revenue. Cntr. I/we have a beneficial short position in the shares of ZYXI either through stock ownership, options, or other derivatives. Long press it until the desired mode is achieved. Is this happening to you frequently? Last year EMSI filed a lawsuit against UHC seeking an injunction to block the $5m repayment demand (the case went to arbitration). I have no business relationship with any company whose stock is mentioned in this article. Yes, you do need a prescription to use this product. Best Liquid Meal Replacements For The Elderly, Stanley Wanderguard Bracelets Review Wanderguard BLUE Tag vs. Wanderguard BLUE Wearable. Contact our team at (800) 845-1771, M-F, 8am-4pm MT, or at store@zynex.com Electronic Price List Access a condensed price list here: You Can Relieve Back Pain With TENS Units. The easyhome Zynex ten unit is perfect for relief of pain, is programmable, it's simple to set and has a wireless design. It is the use of electrical current to stimulate muscle contractions. As such, the UHC orders are highly capital efficient - Zynex won't be able to simply reduce expenses to offset the lost revenue. Choose your option: Health Insurance Coverage Submit a claim to your insurance company for the cost of your supplies. Perhaps lifted by the exit of Empi and curtailment of RS Medical, Zynexs sales stabilized in 2016. That's very much a negotiating item and by being able to negotiate well and make sure that the patients get the supplies that they actually need.". The device line includes NexWave sales. Exhibit 5 - UHC patient claim before policy change: 64 pairs of electrodes covered. For further enquiries and instructions refer to the manual of the device and the advice of the doctor that prescribed it. Zynex exploited UHC's reimbursement vulnerability through 2020, and concurrently grew its salesforce by roughly 5x which naturally led to order and revenue growth. Depending on where a patient lives can skew E0730 rates higher. By Q2, rep headcount was reduced to 450 and year-end guidance was lowered to 550 (Sandgaard attributed the reduction to a "competitive job market" and a "focus on productivity"). 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 best therapy that exists today is easy to use and very effective. Exhibit 2 - Zynex suddenly profitable in 2017. I acquired a Zynex medical NexWave unit while working as a ******* Care practitioner in 2017. Your email address will not be published. Details Select delivery location Only 16 left in stock - order soon Qty: 1 Add to Cart Buy Now Payment Secure transaction Ships from Smarter Living Store Sold by Smarter Living Store Returns In February 2021, UHC announced a new coverage policy for TENS effective May 2021 which specifies the quantity of supplies allowed per prescription. Instead, the insurer negotiated reimbursement rates and allowable supplies with manufacturers ad hoc. We were curious if any other medical device companies generated most of their revenues from a similar reselling strategy, so we looked at all 90 companies in the Medical Appliances and Equipment industry on Finviz. How do they apply in my condition? So, you may wish to check if your insurance can cover the cost. Have a bad return or refund policy.What is Zynex Nexwave Used For? This little unit is worth the small price of admission. Our ultimate goal is your Health and Happiness. Its noteworthy that Zynex doesnt hold any patents for NexWave, likely because its based on technology that is several decades old. The overall results and use are the same except that IFC effects are more intense. Copyright 2020 | All rights reserved by MediChannel.Org Australia. What is Transcutaneous Electric Nerve Stimulation (TENS)? Click here Discontinue Supplies If you have enough supplies, and no longer need more. 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. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. What is Neuromuscular Electrical Stimulation (NMES)? Our prior work on Zynex, which included interviewing former employees and reviewing the reimbursement policies of numerous commercial insurers, led us to suspect UHC was reimbursing Zynex abnormally. to the Nasdaq Capital Market. NexWave received FDA approval in 2011. Your search for "lead wires for Zynex medical - NexWave TENS Unit" returned the following results. You may experience a tingling feeling or pin-pricks in the area that it is being utilized. What is Transcutaneous Electric Nerve Stimulation (TENS)? . If Zynex would publicize (even in a general sense) its billings practices and how its achieving its reimbursement levels, the transparency would benefit patients, insurers and investors. Zynex was already showing signs of nearing the limit of what insurers would tolerate, backing away from aggressive hiring guidance and reducing staff beginning in Q1 2021. They are generally safe for most people, but here are some possible side effects. Entering text into the input field will update the search result below. The patient has to experience chronic (lasting over 3 months) rather than acute pain. Hence, consequently, its therapeutic effects. | Indications. Youre seeing this ad based on the products relevance to your search query. Although both are subject to review and recovery, the $115.62 for 6 units of A4595 ($19.27 each) is the best case for Zynex going forward - an 80% reduction in the rare case UHC pays a claim without review. pain. Zynexs overall gross margins have been above 80% since 2017. We think the end is in sight. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Save time in searching for most relavant and trusted products. The use of low frequency to stimulate nerves is often associated with discomfort and pain due to the difference in the skin and the electrical stimulation. Dabby and associates stated that peripheral neuropathic pain is caused by neuronal damage to the peripheral nervous system and usually affects the distal extremities. But even assuming Zynex unbundles batteries and electrodes codes, we cant get to $1,200 for supplies or $1,500 total in our hypothetical scenario.
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