Issue link: https://beckershealthcare.uberflip.com/i/1344616
58 GASTROENTEROLOGY CMS declines to reimburse for 1st FDA-approved blood-based CRC screening test By Eric Oliver T he FDA declined to extend national coverage determination to Epigenomics AG for its Epi pro- Colon, a blood-based colorectal cancer screening test, the company announced Jan. 21. Epigenomics AG will challenge CMS' decision by either appealing or bringing some form of litigation. In October 2020, CMS created a guide- line for blood-based tests to earn NCD approval. In its most recent decision, CMS eliminated a condition that would require the test to be recommended by a professional society guideline, consensus statement or U.S. Preventive Services Task Force recommendation, according to a SeekingAlpha report. CMS did retain a portion of the guideline that relates to sensitivity and specific- ity. CMS will only cover a test with a sensitivity of at least 74 percent and a specificity of at least 90 percent. Greg Hamilton, Epigenomics AG CEO, previously took issue with this portion of the guideline. He said in a release, "Randomly selecting sensitivity, specificity and testing interval values from various tests and assuming it will reduce CRC mortality is not the ap- propriate way to make evidence-based care decisions." Many people view the guideline as favoring in-development tests by Exact Sciences and Guardant Health. On the news of CMS' decision, stocks for both companies increased 1.6 percent and 1.1 percent, respectively, SeekingAlpha reports. n Audax expects to sell Gastro Health in 2021 By Eric Oliver I n what's shaping up to be a banner year of private equity investment in gastroenterology, PE Hub reported Feb. 5 that Audax Private Equity will sell Miami-based Gastro Health in 2021. Audax and Gastro Health partnered in March 2016, the first deal in the GI space. A source PE Hub spoke with said a sale process is expected to begin this quarter. Audax hired investment bank Moelis to provide sell-side advice. Gastro Health has an EBITDA around $65 million. Audax believes it will get 15-times-plus EBITDA for the platform. The practice has a presence in Florida, Alabama, Ohio, Virginia and Washington. "Gastro Health is likely to appeal to potential suitors given its success expanding outside of its Southern Florida roots," the article said. The move comes as Audax began the sales process for its women's health- focused platform Axia Women's Health. n 5 stats on GI salary & incentive bonuses: Physicians Thrive By Eric Oliver Physicians Thrive released its "Physician Compensation Report 2020," providing an array of salary information. The financial planning company used information from the Bureau of Labor Statistics Occupational Outlook Handbook, Doximity's "2019 Physician Com- pensation Report," information from salary.com, Merrit Hawkins' "2019 Review of Physician and Advanced Practitioner Recruiting Incentives," and Medscape's "2020 Compensation Overview." Here are five points related to gastroenterology: 1. Regional median salaries: Eastern: $300,000 Midwest: $484,445 Southern: $396,872 Western: $370,658 2. Gastroenterologists had the lowest regional median salaries of the other four physician specialties included in the regional breakdown of the report: cardiol- ogy, orthopedic surgery, cardiovascular surgery and neurological surgery. 3. Compared to all median salaries, gastroenterologists had the fifth-highest at $400,000. 4. GIs received an average incentive bonus of $63,000, the sixth-highest incen- tive bonus of 15 included specialties. 5. GIs were among the top 20 most recruited physicians, but the list was not ranked. n