New Dermagraft Coding to Streamline Reimbursement Process for Medicare Providers

WESTPORT, Conn., Dec. 13, 2010 /PRNewswire/ -- Advanced BioHealing, Inc. (ABH), a leader in commercializing cell-based therapies and delivering on the promise of regenerative medicine, today announced the Centers for Medicare and Medicaid Services (CMS) has assigned two new procedure codes for the application of Dermagraft®, effective January 1, 2011. Dermagraft is an FDA-approved cell-based therapy for the treatment of diabetic foot ulcers and is indicated for up to eight weekly applications over a twelve-week period.

The new Healthcare Common Procedure Coding System (HCPCS) codes, which will include site preparation and debridement and 0-day global billing period, will streamline the reimbursement process for Medicare providers, enabling physicians to receive appropriate compensation for each application of Dermagraft, in accordance with its FDA-approved indication and directions for use.

The Dermagraft product code (HCPCS Q4106) will remain unchanged.

"Advanced BioHealing has been working closely with CMS officials to ensure consistent coding for Dermagraft. These efforts resulted in the creation of new codes, which will ensure that payment is made appropriately for Dermagraft each time a covered service is provided, thereby reducing administrative burden for both Medicare providers and contractors," said Kevin Rakin, Chairman and Chief Executive Officer for ABH. "Like diabetes, diabetic foot ulcers are a growing epidemic, so streamlining access to advanced therapies like Dermagraft will help reduce the need for lower extremity amputation and additional significant costs to both the Medicare system and beneficiaries."

More than one million physicians and health care professionals are paid under Medicare's fee schedule, and its rules cover more than 7,000 types of services in physician offices, hospitals and other health care settings.

These new codes were established in a final ruling released by CMS on November 3, 2010. The final rule is consistent with the initial Medicare Physician Fee Schedule Proposed Rule released on June 25, 2010.

For more information, please visit the Dermagraft Reimbursement Support Center.

About Advanced BioHealing, Inc.

Advanced BioHealing develops and commercializes living cell therapies that repair damaged human tissue and enable the body to heal itself. A privately held company, Advanced BioHealing maintains its corporate office in Westport, Conn. with additional sites in La Jolla, Calif. and Nashville, Tenn. To learn more about Advanced BioHealing, please visit the Company's web site at www.ABH.com.

About Dermagraft®

Dermagraft is a bio-engineered skin substitute that assists in restoring damaged tissue and supports the body's natural healing process. It is FDA approved to treat diabetic foot ulcers and is the focus of an ongoing pivotal trial in subjects with venous leg ulcers (VLUs) to assess the product's safety and efficacy in the promotion of healing VLUs. To date, more than 250,000 applications of Dermagraft have been administered in over 1,000 wound care centers and outpatient clinics nationwide. For videos of Dermagraft in action, case studies, research and more, visit www.Dermagraft.com.

SOURCE Advanced BioHealing, Inc.