Pediatric Prosthetics Inc. Announces Recent Downward Trends In Health Insurance Reimbursements For Pediatric Prostheses

Main Category: Pediatrics / Children's Health
Also Included In: Rehabilitation / Physical Therapy
Article Date: 11 Apr 2008 - 3:00 PDT

email to a friend   printer friendly   view / write opinions   rate article

The Vice President of Pediatric Prosthetics Inc. (OTCBB:PDPR), Kenneth Bean stated : "We founded Pediatric Prosthetics Inc. to better serve the children with a limb-loss across the country and build a strong national company on behalf of our shareholders. We have worked diligently for four years building the company into a viable national prosthetics provider with over 30 allied fitting facilities, Medicare and Medicaid approval, Full SEC compliance, and just recently, completed the national ABC Certification process.

"As has become clear in just the last few days based upon reimbursement claims being processed since January 2008, the major health insurance companies have begun imposing unprecedented procedure caps on prosthetic services to children. These arbitrarily imposed caps or 'allowables' have impacted our operating margins, and in fact have put our entire business model under duress. On some claims submitted, our reimbursements have been cut over 40% below what we have historically seen.

"We have also been involved in seeking additional equity investment this Spring, but to date have not been successful in attracting funds.

"If the current trend in allowables continues and we are unable to raise additional capital on favorable terms, if at all, we could be forced to change our business plan and/or may be forced to cease our business operations."

Please see the articles now posted on the most recent "Amputee Coalition of America" website home-page, (http://www.amputee-coalition.org), for a more in depth understanding of the environment here described.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular when used in the preceding discussion, the words "believes", "expects", "intends", "will", "anticipated" or "may" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties including, without limitation, risks associated with operations, availability of capital on a reasonable term, the effects of government regulations and operations risks, and the risk factors set forth from time to time in the Company's SEC reports, included but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB, and any reports on Form 8-K. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. Pediatric Prosthetics Inc. (PDPR.) takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company. The forward-looking statements contained herein reflect the Company's judgment as of the date of this release, and the Company cautions readers not to place undue reliance on these statements.

Pediatric Prosthetics Inc