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New Study: Stretta Treatment of GERD Can Yield Meaningful Cost Savings For Payers

Monday, May 23, 2016 General News J E 4
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NORWALK, Connecticut, May 23, 2016 /PRNewswire/ -- Mederi Therapeutics, Inc., manufacturers of Stretta Therapy for gastroesophageal reflux disease (GERD), today announced that a new study, published in Managed Care, suggests the potential for substantial payer cost savings associated with radiofrequency energy (RFE) treatment of GERD patients, as compared to treatment with medical management or fundoplication.

The study, entitled: "Budget Impact Analysis to Estimate the Cost Dynamics of Treating Refractory Gastroesophageal Reflux Disease With Radiofrequency Energy: a Payer Perspective" was conducted by researchers at Baker Tilly LLP, Fairleigh Dickinson University, and Stanford University. Using claims data from Medicare and a national health plan comprising approximately 24 million covered lives, the study concluded that "increasing the total number of RFE procedures to 2% of total cases performed generated per-member, per-month (PMPM) savings of $0.28 in the Medicare population and $0.37 in the commercially insured population," with "further increases yielding higher PMPM savings." This translates into a combined estimated savings of more than $15 million per year for a five million member plan.

According to a report from the American Gastroenterology Association (AGA), GERD is the most costly gastrointestinal disease in the U.S. and associated with about 142 billion in direct and indirect costs. David Gregory of Baker Tilly, explained, "Considering the high cost burden of GERD, the savings noted by using Stretta (RFE) on a conservative number of patients is significant." The methodology included a retrospective claims analysis "designed to assess the costs and impact on payer expenditures as­sociated with managing and treating GERD surgically, endoscopically (RFE/Stretta), or medically," added Gregory.

"In today's healthcare environment, truly effective treatment should provide high quality patient care, while positively impacting health economics," said George Triadafilopoulos, MD of Stanford University and coauthor of the study. "We've known for some time that RFE treatment of GERD is safe and effective. Now, we know that it lowers overall patient treatment costs in a meaningful way, making it a sensible choice for payers looking to cover GERD treatment cost-effectively."

About 30% of adults in the United States suffer from chronic GERD. Many patients don't completely respond to proton pump inhibitors (PPIs), the most common type of GERD medication, and many more are concerned about risks associated with long-term PPI use, or surgical intervention. Stretta provides a non-surgical, middle treatment option for these patients.

The study concluded that: "Adding to the clinical importance of RFE in filling the gap between medical and surgical management, this economic analysis demon­strates to payers that the adoption of RFE can create notable savings to their plans when compared to surgery or medical management."

About Mederi Therapeutics Inc. and Stretta® Therapy Mederi manufactures innovative devices that use radiofrequency (RF) energy to treat digestive diseases. Mederi's product, Stretta Therapy is a clinically validated, non-surgical procedure that significantly improves GERD symptoms, allowing a majority of patients to eliminate or reduce medications, and avoid surgery. Stretta delivers RF energy to the muscle between the stomach and esophagus. Studies show that this treatment regenerates the muscle, resulting in improved barrier function, fewer reflux events, significant symptom relief and dramatic improvement in quality of life. More than 40 studies show that Stretta is safe and effective, with durability of treatment effect up to 10-years. Stretta is available worldwide.

About Baker TillyBaker Tilly is a nationally recognized, full-service accounting and advisory firm. Baker Tilly's healthcare practice is comprised of consulting, tax and audit professionals that work with hundreds of hospitals, health systems, and health plans developing growth strategies.

Media Contact: Mike Elofermike@pascalecommunications.com (484) 620-6167

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