Organogenesis applauds findings from the Office of Inspector General

Organogenesis Holdings applauds the findings by the Office of the Inspector General, OIG, of the U.S. Department of Health and Human Services, HHS, that transitioning all skin substitute products to average sales price, ASP, -based payments has the potential to substantially reduce Medicare Part B expenditures. In the report, entitled "Some Skin Substitute Manufacturers Did Not Comply with New ASP Reporting Requirements," OIG concluded Centers for Medicare and Medicaid Services could potentially save tens of millions of dollars per quarter if it uniformly used the ASP payment methodology for all skin substitutes. "CMS has made progress in the last six months by expanding the number of skin substitutes that are being paid on the basis of ASP," said Gary Gillheeney, Sr., President and Chief Executive Officer of Organogenesis. Gillheeney added, "ASP-based payments are an important step in stabilizing the skin substitute market and creating a level-playing field. This complements the previous action by the FDA requiring certain injectable tissue products be taken off the market and proceed down a biologics license application pathway."