Replies to post #92993 on Biotech Values

[DewDiligence]

diagnostic companies stand to gain from the expansion of insurance coverage…

Agreed. In fact, the benefit for diagnostic companies is a double whammy:

1. More tests will be ordered; and
2. There will be fewer charge-offs for uncollectable receivables.

#2 has been a killer for some diagnostic companies such as CLRT. The problem, in a nutshell, is that self-pay tests and the co-pay portion of reimbursed tests do not get paid. Patients have already received their service and see no reason to send in a check when they receive a bill.