Milestone Scientific CEO Provides Letter to Shareholders; Provides Positive Reimbursement Update - Seite 2

More importantly, advisory physicians reported 100% success rate for each of their patients using CompuFlo, with zero dural punctures. This is particularly noteworthy, as 50% of these procedures were conducted in the thoracic and thoracic cervical junction of the spine, confirming the importance of the new indication.

In addition to ongoing engagement throughout the year with our advisory sites, Milestone conducted a follow-up survey to gain feedback regarding the ‘real world’ use of the technology. All provider sites participated in the survey and their results further validated the clinical safety, predictability, utility and efficacy of the use of CompuFlo.

For a new medical device, the process of submission, including the handling of denials and appeals can be a lengthy process for the physicians and their practice. Early adopters using the CompuFlo knowingly embarked on this pathway, and I cannot express how grateful we are for the considerable time and effort they have expended to support and advance our technology.

Given that we started our reimbursement project execution in the beginning of the second quarter of 2023, and being respectful of the time that is required for going through this process, which can take up to 6-9 months, we are now able to share the data provided from the preliminary analysis. A review and analysis of claims data shared by providers indicated that roughly one-third of claims have already received positive payor reimbursement. More than half of these payments were paid by commercial payors, followed by Medicare. The remaining two-thirds of the claims submitted are still pending adjudication.

Overall, I could not be more pleased with the commercialization progress we have made, including the positive clinical feedback we have received from the physicians and medical institutions. In fact, as recently reported, University of Texas Medical Branch (UTMB) Health Clear Lake Campus Hospital, recently expanded the use of the CompuFlo beyond the labor and delivery department to now include our technology for epidural needle placement and verification within the epidural space in spinal cord stimulator implantation procedures. This follows a successful evaluation process, reporting 100% success and a favorable review by the value assessment committee.