idea-019 · business case

Who pays, from which budget, how much, and 2-4 commercial routes to first revenue — every figure below traces to a copied claim or a declared assumption, and the routes are laid out unranked. Choosing a commercial strategy is a Tier 3 act, so this page presents options and stops.

Posture-Triggered Abdominal Compression for nOH — business case

Intended use: For prescription use in the home by adults with symptomatic neurogenic orthostatic hypotension due to primary autonomic failure (Parkinson disease, multiple system atrophy, or pure autonomic failure) who remain symptomatic despite non-pharmacologic measures, to apply servo-controlled abdominal compression automatically on assumption of an upright posture and to release it on return to a seated or recumbent posture, to reduce orthostatic symptom burden and increase upright standing time.

Read this first. The previous build of this case said Medicare would pay for the controller as a capped monthly rental. That premise is refuted. The July 2026 DMEPOS (durable medical equipment, prosthetics, orthotics and supplies) fee schedule puts E0650 (a HCPCS code for durable medical equipment), E0651 and E0652 in the inexpensive-or-routinely-purchased category on every pricing line, not capped rental claim 117refuted. The loop record's IR-20 claim 117 came back refuted absorbed this, because the P0 the original shape shape was always a patient-owned purchase. This case is rebuilt on that cadence. A placement in the compressor family is paid once, and the only recurring line left is replacement garments, which nobody has checked. A published allowable now exists for every family code claim 107verified. But three things are still open: which code the device would bill under, whether its cost clears that code's allowable, and whether any coverage policy reaches nOH (neurogenic orthostatic hypotension). So the page shows what one placement is paid, and not whether that is enough.

Who pays

The chain has four links, and the file has verified evidence for only one of them. That one is the rule saying Medicare Advantage (Medicare Advantage) follows Traditional Medicare's benefit and coverage outcome.

Reimbursement path

Six questions that the rubric's Factor 2 collapses into one number. Each has its own evidence position and one basis. No score, no tier, no composite. Read the coverage line first. Then note that the one verified pillar is a verified obstacle, and that the new verified fact this rebuild uses (the fee schedule) sits inside row 2b without settling it.

#QuestionFindingBasis
2aCoding route — Cat I / Cat III / unlisted / HCPCS (Healthcare Common Procedure Coding System) II / noneHCPCS Level II. No existing code describes this device, and a CMS decision picks the route. The pneumatic-compressor family exists (E0650, E0651, E0652), as do the trunk and chest appliance codes (E0656, E0657) and the miscellaneous E1399 claim 10unconfirmed. That tag is held by its negative half; the code-existence half reads verified in the note. Every non-segmental appliance descriptor in E0650-E0676 names a limb, and none names an abdominal appliance or a posture-triggered sustained-pressure device. So the device bills under an accepted descriptor mismatch, under a new code, or under E1399, and choosing among those is a PDAC (Pricing, Data Analysis and Coding contractor)/CMS coding determination claim 115unconfirmed. That CMS will assign a billable code at all is a future act claim 40unconfirmed. Since the fee schedule landed, this row also sets the price. The one-time purchase allowable differs about sevenfold between E0650 and E0652 (see 2b), so the coding outcome is also the payment outcome. This is not a CPT (Current Procedural Terminology) question. No CPT code is involved, so cpt was not run and no descriptor is quotedclaim 115unconfirmed
2bPayment adequacy — does the rate clear a stated cost floorA rate now exists on one side. There is no cost floor on the other, so adequacy is still open. The July 2026 DMEPOS fee schedule publishes an allowable for E0650, E0651, E0652 and E0656 claim 107verified. The compressors are category IN and are paid as a purchase, not capped rental claim 117refuted. Non-rural new-purchase (NU) allowables across the contiguous states and DC: E0650 $872.43-$1,026.39, E0651 $1,112.52-$1,308.85, E0652 $6,422.01-$7,555.31. These are allowed amounts, and coinsurance comes out of them; the Verifier read them into the note on claim 96unconfirmed and claim 23unconfirmed, and both tags are held by their unsourced halves. The cost side is an unbuilt cost model: a controller plus the garments consumed over its life claim 92unconfirmed. The proposition that this clears the allowable, at planned volume and at a tenth of it, is the one this row turns on, and it has no cost figure behind it claim 96unconfirmed. Which allowable is the denominator is 2a's questionclaim 96unconfirmed
2cPractice-expense headroom — does the PE portion cover the deviceNo practice-expense portion exists on this route, by construction, provided the device is DME. A supplier-billed home item is not furnished incident to a physician service, so no PFS (physician fee schedule) practice-expense RVU (relative value unit) carries its cost. rvu E0650 → refuted: "not priced under the PFS … it may still be paid under OPPS, the ASC list or DMEPOS, none of which this connector reads". The condition on this row is the benefit category. If CMS did not treat the device as DME, no PE line would pick it up either, because nothing in the file puts it in an office serviceclaim 32unconfirmed
2dSite of care & bundling — office/facility differential, DRG or APC packagingHome, supplier-billed. There is no facility claim to package the device into, but there is a bundling question inside DME, and after the refutation it is the only recurring line. No inpatient DRG or packaged OPPS code applies to an item dispensed to a patient's home. apc E0650 → unconfirmed, no data/opps_addendum_b.csv, which is a tooling gap and not a finding; drg has no cache either and no DRG is in question. The exposure that bites is the garments. Whether Part B pays separately for replacement bladders and garments, or treats them as included in the compressor payment, is unchecked claim 122unconfirmed. The Verifier's note on that claim records that the fee schedule prices appliance codes as separate lines, but separate payability is a DME MAC (durable medical equipment Medicare administrative contractor) policy-article rule that nobody has read. Residual cadence exposure: the trunk and chest appliances are category CR, with E0656 priced on a monthly rental line only, $82.35 non-rural claim 107verified. If CMS coded this device's garment as a trunk appliance, that half of the system would be paid as a capped rental, not a purchase[gap: neurogenic-orthostatic-hypotension.reimbursement.pneumatic-appliance-replacement-payment]
2eCoverage — has any payer agreed to pay for this indicationNo payer. The verified evidence runs against coverage. By its own device description, NCD 280.6 (a Medicare national coverage determination number) covers an arm or leg garment that is intermittently inflated and deflated. It does not reach a sustained-pressure abdominal device claim 116verified. Its covered indications are lymphedema and venous stasis ulcers, not OH claim 9verified. A future NCD (national coverage determination) or LCD (local coverage determination) reaching nOH is a CMS/DME MAC (Medicare administrative contractor) act nobody has been asked to take claim 41unconfirmed. The DME MAC LCD L33829 (a Medicare local coverage determination number) has never been read claim 118unconfirmed. No accelerated route is open today: RAPID is a notice whose comment period closes 2026-10-13 claim 15verified, TCET is paused claim 16verified, and MCIT was repealed before it operated claim 18verified. The same notice excludes a device "already the subject of a controlling Medicare NCD" claim 13verified, and whether 280.6 would be read as controlling here is a CMS judgment. Because MA follows NCDs claim 120verified, one coverage decision governs both books. The refutation of claim 117refuted changes nothing here: a purchase allowable is still not coverageclaim 116verified
2fEx-US pathway — DE NUB/G-DRG, UK NICE (National Institute for Health and Care Excellence)/OPCS-4Permanently unconfirmed, and not for lack of research. launch_jurisdiction: is US. No connector in this repo reaches a non-US payment system, and no claim in the candidate speaks to one in either direction. The two non-US clinical anchors in the file (the Innsbruck binder cohort and the EFNS guideline) are clinical facts, not payment facts— none

Pillars on verified claims: 1/6 · on assumptions: 0 · queued as research: 1

Of the other four pillars, 2a, 2b and 2c rest on unconfirmed claims and 2f rests on nothing. The one verified pillar (2e) verifies an obstacle: the existing national coverage determination does not reach this device. What is verified is that no coverage exists, not that some does. The line moved from the previous build (1 verified · 0 assumptions · 2 research) in one place only. 2b no longer waits on a fetch, because the fee schedule is read, but it now rests on the cost-of-goods claim the rate has to be set against. That claim is unconfirmed, so the row is not counted as verified.

Three distinctions kept apart deliberately:

Verdicts recorded where a check was run, whatever came back. Every run was made cold during this build:

The money model

The size comes from the market model and is not rebuilt here. That model predates the refutation. Its coverage line reads three of twelve legs on verified claims, and its modeled band is "not computable". Its controller-payment and persistence legs, and its framing of the unit as "one placement cycle" across a rental period, rest on the capped-rental reading that claim 117refuted now contradicts. Its bracketed citations have not moved, so stale.py does not flag it. It needs a rebuild anyway (/market-model idea-019). This case therefore quotes only its three bounded upstream legs, which the refutation does not touch. It then sets out the unit economics the file can support, on the purchase cadence.

LineFigureBacking
US people with Parkinson disease, age 45+ (market model leg 1)680,000 counted in 2010; about 930,000 projected for 2020 (a projection, not a count); the authors call both minimum estimatesclaim 81verified
The unconfirmed PD (Parkinson disease) headline the leg replacesabout one million, plus 90,000 newly diagnosed per year; not usedclaim 21unconfirmed
Share of PD with neurogenic OH (leg 2)26% pooled; the market model's Low of 19.6% applies the same paper's publication-bias adjustment to that figure; heterogeneity I² 96%claim 22verified
US people with MSA, age 30+ (leg 3)41,133 on the one-claim definition, 2021; the two-claim definition roughly halves itclaim 80verified
MSA nOH share, PAF (pure autonomic failure) count, diagnosed-and-still-symptomatic share (legs 4-6)not establishedclaim 24unconfirmed
Medicare share of the eligible population (leg 7)not establishedclaim 44unconfirmed
Share in which the device is covered and paid (leg 8)not established; a future coverage actclaim 41unconfirmed
Medicare Advantage inside the same benefit decision as fee-for-serviceyes, for basic benefitsclaim 120verified
How the compressor family is paida one-time purchase (category IN), not a capped monthly rental; the capped-rental reading is refutedclaim 117refuted
Whether an allowable is published for each family codeyes, for E0650, E0651, E0652 and E0656claim 107verified
New-purchase allowable per placement, by code (non-rural, contiguous states and DC)E0650 $872.43-$1,026.39 · E0651 $1,112.52-$1,308.85 · E0652 $6,422.01-$7,555.31; tag held by the claim's cost-of-goods halfclaim 96unconfirmed
Which of those codes the device bills undernot established; a coding determination, and it moves the allowable about sevenfoldclaim 115unconfirmed
If paid through the rental line instead of a purchasetotal payments capped at the purchase allowable[assumption A7 A torso-mounted accelerometer or…]
Split of the allowable between Medicare and the beneficiaryMedicare 80%, beneficiary 20% of the lesser of charge and fee schedule[assumption A8 A bench rig can demonstrate that the device…]
Whether the beneficiary pays that residualnot establishedclaim 36unconfirmed
How often one beneficiary's controller can be paid forat most once per five-year reasonable useful lifetime in ordinary use[assumption A9 A posture-triggered abdominal compression…]
What one placement is, physicallya reusable controller, single-patient multi-use garments, and a charger, with different service livesclaim 92unconfirmed
Garments consumed per placement per yearmore than one[assumption A6 Mechanism and clinical-risk reasoning]
Whether those garments are paid separatelynot established; now the only recurring lineclaim 122unconfirmed
If the garment were coded as a trunk appliancecapped rental, E0656 at $82.35 per rental month non-ruralclaim 107verified
Manufacturer revenue per placement, third-party supplier shapethe supplier's one-time acquisition price, below the purchase allowable the supplier collects[assumption A1 No FDA 510]
Manufacturer revenue per placement, manufacturer-as-supplier shapethe purchase allowable itself, less the cost of being a supplier[assumption A2 No granted De Novo request in the FDA De…]
Cost of goods per placement against the allowablenot established on the cost side; the proposition is that it clears at planned volume and at one-tenth of itclaim 96unconfirmed
Share won, price to the buyer, gross marginnot established; no claim in the file carries any of the three, and this case does not supply themclaim 24unconfirmed
Cash price the patient would pay with no payernot established[assumption A3 openFDA device classification lists product…]
Does contribution margin cover the programme's fixed cost before a 510(k) (premarket notification) follower arrivesopen; the last line of the chain and the one the other lines feedclaim 123unconfirmed
Largest single fixed-cost item in that programmethe sham-controlled pivotal study[assumption A5 This candidate's own bladder geometry and…]
Context only, never a floor: Medicare FFS (fee-for-service) purchase beneficiaries for the incumbent limb compressorsE0650 97 · E0651 34,399 · E0652 6,792; lymphedema and venous volumes, not nOH patients; service year not stated in the fileclaim 25verified

Read the bolded rows together: what changed and what did not. With the compressor family in category IN, a placement pays once claim 117refuted. The fleet-and-annuity reading of the previous build is gone. Under A1 No FDA 510, the manufacturer sells one controller per placement into a supplier's inventory at a price below the purchase allowable [assumption A1 No FDA 510]. The supplier does not recycle a rented controller to the next beneficiary, because title passes on purchase. Under A2 No granted De Novo request in the FDA De…, the manufacturer collects the allowable once and carries the supplier's accreditation, delivery, fitting, documentation and collections [assumption A2 No granted De Novo request in the FDA De…]. These are still two businesses. The file does not choose between them, and neither does this case.

What the refutation made heavier. A one-time payment puts all the weight on two lines. The first is whether cost of goods clears the allowable of whichever code applies claim 96unconfirmed. That allowable swings about sevenfold with the coding outcome claim 115unconfirmed. The second is whether anything is paid after the purchase: garments, if separately payable claim 122unconfirmed and short-lived [assumption A6 Mechanism and clinical-risk reasoning], and a replacement controller no sooner than the reasonable useful lifetime [assumption A9 A posture-triggered abdominal compression…]. If garments are bundled, the placement is a single controller event, repeated at most once per lifetime.

The unit is a placement, and no annual revenue line is written. Turning placements into a year needs two inputs. One is the rate at which new patients become eligible. That incidence leg is draftable in the market model's gap register and is not yet a claim. The other is the replacement interval [assumption A9 A posture-triggered abdominal compression…]. The incumbent-compressor volume above is not a substitute. It is paid under an NCD that does not reach this device claim 116verified.

State the market and adoption verdicts explicitly, from cold runs during this build:

The revealed-behaviour twins of these class-3 questions are already rows filed by the market model: home pneumatic-compressor persistence, and droxidopa uptake after launch. This case files no further rows.

Path to first revenue

Routes

Four routes to a first dollar, in no order. The first three share a regulatory spine and diverge on who pays. None is ranked here, and choosing between them is a human decision. The refutation of claim 117refuted changed the payment cadence under Route A. It did not add, remove or reorder a route.

Route A — Medicare Part B DME benefit, full therapeutic claim

Route B — Cash-pay, full therapeutic claim

Route C — Breakthrough designation and the RAPID coverage pathway

Route D — Claim-stripped garment, no orthostatic claim

What all four share. Each route rests on at least one assumption this case declared. Only Route A now has a published payment amount on record claim 107verified, and it is a range across three codes whose selection is open, set against a cost nobody has built. Routes A and C also share the coverage question, B and D share a cash buyer, and A, B and C share the pivotal study. Most of the file's unresolved evidence is common to more than one route, so resolving it moves several routes at once and does not sort them.

Assumption register

Every assumption cited above, with what would settle it and who could run it. Five are already on file from the previous build (claims 125-129) and were not re-appended. Four are new this build and were appended as unverified claims 136-139.

#AssumptionFalsifierOwner
A1 No FDA 510With a third-party DMEPOS supplier and the compressor family paid as a purchase (category IN), the manufacturer's revenue per placement is the supplier's one-time acquisition price for controller and garments, below the NU purchase allowable the supplier collects (claim 136unverified, new this build; it replaces claim 124unconfirmed, whose capped-rental premise is refuted)Acquisition-price quotes for an E0650-E0652 home pump from three or more accredited DMEPOS suppliers, set against the published NU allowables. Revealed-behaviour twin: what a publicly reporting pneumatic-compression manufacturer discloses in its annual filing about revenue through DME suppliers versus direct billing80_commercial (supplier interviews); 45_research (filings)
A2 No granted De Novo request in the FDA De…A manufacturer can enrol as its own accredited DMEPOS supplier under 42 CFR 424.57 and bill the DME MAC directly for its own device (claim 125unconfirmed, on file)The Verifier's regulation 424.57 --expect "manufacturer" returned unconfirmed, a missing phrase and not a refutation, and a re-run this build returned the same. What settles it is a human read of the 424.57(c) supplier standards and CMS-855S enrolment rules for any bar on a manufacturer billing its own productMarket access (human read)
A3 openFDA device classification lists product…Adults with symptomatic nOH, or their families, will pay the device's full price out of pocket where no payer pays (claim 126unconfirmed, on file)A priced deposit or pre-order test among at least 20 patients recruited through autonomic or movement-disorder clinics. Revealed-behaviour twin: published cash-pay uptake of a non-covered home device in a Parkinson disease population80_commercial with a clinical partner
A4 PMID 27271310A powered abdominal garment labelled with no OH, BP or symptom claim can be sold to people with nOH without FDA treating its posture-triggered design or its distribution as an OH intended use under 21 CFR 801.4 (claim 127unconfirmed, on file)A Q-Sub on the claim-stripped labelling. The 801.4 text is a registry read, and its "design or composition … circumstances surrounding the distribution" language bears against the proposition without settling itRegulatory (Q-Sub, human-run)
A5 This candidate's own bladder geometry and…The sham-controlled pivotal study is the largest single fixed-cost item in the development programme (claim 128unconfirmed, on file)A costed programme: CRO quotes for the pivotal and feasibility studies, the FDA De Novo user fee in force, and a coding and coverage consultant estimate, compared line by lineOperations-NPI (new product introduction) / human
A6 Mechanism and clinical-risk reasoningA single-patient multi-use abdominal garment worn every upright period and cleaned on its labelled regimen lasts less than a year, so each placement uses more than one garment a year (claim 129unconfirmed, on file)Bench wear and laundering-cycle testing of a candidate garment to seam or bladder failure. Registry twin: the replacement frequency that L33829 and its policy article allow for pneumatic appliances, which sits inside 2d's commissioned rowEngineering (bench); 45_research (the LCD read)
A7 A torso-mounted accelerometer or…Under 42 CFR 414.220(b), an IN-category item is paid on a rental basis or as a lump-sum purchase, and total payments may not exceed the purchase fee schedule amount, so the RR line cannot earn more than the NU allowable (claim 137unverified, new)regulation 414.220 --title 42 --expect "may not exceed the fee schedule amount recognized for the purchase". A probe this build returned the paragraph (b) text; the Verifier's run is what tags itVerifier (registry text)
A8 A bench rig can demonstrate that the device…Under 42 CFR 414.210(a), Medicare pays for DME on the basis of 80 percent of the lesser of actual charge and fee schedule amount, leaving the beneficiary the remaining 20 percent (claim 138unverified, new)regulation 414.210 --title 42 --expect "80 percent of the lesser of". A probe this build found the phrase. The beneficiary-share half is the arithmetic complement, which a human read of the Part B coinsurance rule confirms or correctsVerifier (registry text); market access (coinsurance read)
A9 A posture-triggered abdominal compression…Under 42 CFR 414.210(f), Medicare does not pay to replace a DME item for the same beneficiary before its reasonable useful lifetime, five years unless CMS sets another, except for loss, theft or irreparable damage, so a controller is paid at most once per five years in ordinary use (claim 139unverified, new)regulation 414.210 --title 42 --expect "reasonable useful lifetime", then --expect "5 years" read in context of paragraph (f). A probe found both phrases but not their context. Then a human check that no shorter lifetime is set for E0650-E0652Verifier (registry text); market access (human read)

Cheapest falsifiers: A7 A torso-mounted accelerometer or…, A8 A bench rig can demonstrate that the device… and A9 A posture-triggered abdominal compression…. Each is a CFR paragraph the regulation connector already reads, and a probe during this build found the key phrase for each. Of the three, A9 A posture-triggered abdominal compression… moves the most. It is the replacement interval that, together with an incidence leg, would turn "one placement" into an annual revenue line. It is also the one where the connector found the phrase without showing its context, so a Verifier run plus a read of paragraph (f) settles it or corrects it.

Where this case outruns the file

Every quantity this case needs and nothing in the file supplies. These are the work items.

Words on this page35 abbreviation(s) and code(s), with what each stands for — copied from _shared/plain-language.md
21 CFR
Title 21 of the Code of Federal Regulations — the US food-and-drug rulebook; a number after it is one regulation, often the one that classifies a device type
510(k)
premarket notification — the FDA route for a device shown to be as safe and effective as one already on the market; months, no clinical trial as a rule
Class II
FDA device class II — moderate-risk devices, usually cleared by 510(k)
CMS
Centers for Medicare & Medicaid Services — the US agency that runs Medicare, and so decides what Medicare pays for
CPT
Current Procedural Terminology — the US billing codes for what a clinician does; owned by the American Medical Association
De Novo
De Novo classification request — the FDA route for a new, lower-risk device with no comparable product to point at; longer than a 510(k), usually needs clinical data
DME
durable medical equipment — equipment a patient uses at home, such as a pump or a stimulator, that Medicare pays for under its own rules
DME MAC
durable medical equipment Medicare administrative contractor — one of the four regional contractors that process Medicare's home-equipment claims and write its local coverage rules
DMEPOS
durable medical equipment, prosthetics, orthotics and supplies — the Medicare benefit and fee schedule that home equipment is paid under
E####
a HCPCS code for durable medical equipment — one billing code for a piece of home equipment; the letter E and four digits
FDA
US Food and Drug Administration — the US regulator that clears or approves a device before it can be sold
FFS
fee-for-service — the traditional form of Medicare that pays per item or service
HCPCS
Healthcare Common Procedure Coding System — the US billing codes for equipment, supplies and some services; a code is how a payer recognises what to pay for
IP
intellectual property — patents and the other rights that let a company stop others copying it
L#####
a Medicare local coverage determination number — the public id of one local coverage rule; the letter L and five digits
LCD
local coverage determination — a Medicare contractor's rule, valid in its region, saying when something is covered
MA
Medicare Advantage — Medicare delivered through a private insurer; must cover at least what Medicare covers
MAC
Medicare administrative contractor — a regional contractor that processes Medicare claims and writes local coverage rules
Medicare Advantage
Medicare Advantage — Medicare delivered through a private insurer; must cover at least what Medicare covers
Medicare Part B
Medicare Part B — the part of Medicare that pays for outpatient care and equipment used at home
mmHg
millimetres of mercury — the unit blood pressure, and the suction of a wound pump, are measured in
MSA
multiple system atrophy — a rare degenerative brain disease that, among other things, breaks blood-pressure control
NCD
national coverage determination — a Medicare rule, valid everywhere in the US, saying whether and when something is covered
NCD ###.#
a Medicare national coverage determination number — the public id of one national coverage rule
NCT########
a ClinicalTrials.gov registration number — the public id of one registered clinical trial
NICE
National Institute for Health and Care Excellence — the English body whose guidelines say what the NHS should use
nOH
neurogenic orthostatic hypotension — blood pressure that falls on standing because the nerves that should tighten the blood vessels have failed
NPI
new product introduction — taking a design into manufacture: tooling, suppliers, first production
OH
orthostatic hypotension — blood pressure that falls on standing
PAF
pure autonomic failure — a rare condition in which only the nerves controlling automatic functions such as blood pressure fail
PD
Parkinson disease — Parkinson disease
PDAC
Pricing, Data Analysis and Coding contractor — the Medicare contractor that decides which billing code a specific product falls under
PFS
physician fee schedule — the Medicare price list for what clinicians do
PMA
premarket approval — the FDA route for the highest-risk devices; years and clinical trials
RVU
relative value unit — the unit Medicare uses to price a clinician's work