Company: MDXG
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001376339-25-000009
Chunk: 39

Company: MIMEDX GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 39
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,202420232022Hospital$187,440 $187,000 $163,206 Private Office112,388 95,789 77,158 Other49,051 38,688 27,477 Total$348,879 $321,477 $267,841 

Reimbursement Changes

On April 13, 2025, new Local Coverage Determinations (“LCDs”) are currently scheduled to go into effect which will modify the reimbursement of skin substitutes in physician office settings. Among other changes, many allografts that have been covered will no longer be reimbursed for Diabetic Foot Ulcers and/or Venous Leg Ulcers. While EPIFIX and EPICORD continue to be covered under the new LCD, certain of our other products are not currently included. In the past LCDs have been delayed or terminated. The Company cannot be certain they will go into effect in April 2025.

Sales Returns AllowanceActivity related to the Company’s sales returns allowance during the year ended December 31, 2024 was as follows (in thousands):Sales Returns AllowanceBalance at December 31, 2022$659 Additions3,899 Deductions and write-offs(3,462)Balance at December 31, 20231,096 Additions4,314 Deductions and write-offs(3,420)Balance at December 31, 2024$1,990 

F- 31

13.     Segment Information

The Company determines its operating segment based on how the Chief Operating Decision Maker (“CODM”) reviews the business and makes resource allocation decisions. The Company concluded that Joseph Capper, the Company’s Chief Executive Officer, is the CODM. The Company has a single operating segment, which has not been aggregated with other operating segments. The Company defines its segment on the basis in which internal reported financial information is regularly reviewed by the CODM to analyze financial performance and make capital allocation decisions. The CODM uses several measures of profit or loss to assess Company performance and allocate resources. Of these measures, net income (loss) is the measure that most aligns to GAAP. Other measures used by the CODM includes adjusted earnings before interest, taxes, depreciation and amortization. The CODM assesses actual results against budgets and forecasts, and uses this information to inform various strategic investments into the Company’s operations, including headcount and compensation.Each financial statement caption included on the consolidated statements