AOTI, INC.
AOTI · AIM · Health Care · mcap £138m · 130.0p 2 open situations →
Open · 2
Arizona Medicaid reimbursement dispute
Since 30 March 2026 AOTI has stopped treating new Arizona Medicaid patients (from 1 April) over a reimbursement dispute, with $15.6m of receivables outstanding at end-2025. The interims say actions to obtain coverage policy and recover historical claims continue, timing is uncertain, and the Board is confident of collecting. In September the lender agreed revised revenue and EBITDA covenants. Ceasing new patients improved working capital.
- Treatment
- New Arizona Medicaid patients ceased from 1 April 2026
- Receivables
- $15.6m of $21.8m group receivables at 31 December 2025
- Board view
- Confident of collecting historical debt; timing uncertain
- Lender
- Runway (acquired SWK) agreed revised revenue and EBITDA covenants in September
- Reported impact
- Medicaid reported growth 2.4% against 21.5% underlying in H1 2026
Next: update on Arizona coverage policy and recovery of historical claims
- 30 Sep 2026 Treatment ceased; recovery actions ongoing; covenants revised
- 27 Jul 2026 New enrolment ceased; actions ongoing
- 30 Mar 2026 Talks ongoing; new patient enrolment stops 1 April
CMS local coverage determination
The proposed nationwide LCD for topical oxygen therapy was published in July 2026, and the company calls it transformational for the addressable market once finalised. The interims reiterate that the existing commercial infrastructure covers most of the US population and can be leveraged without a major sales ramp-up. No final date is given.
- Status
- Proposed LCD published in July 2026 by the DME MACs on behalf of CMS
- Company view
- Transformational once finalised; will dramatically expand US addressable market
- Commercial readiness
- Existing infrastructure covers the majority of the US population
- Final date
- Not stated
Next: Final LCD following proposed LCD and comment period
- 30 Sep 2026 Proposed LCD published July 2026
- 27 Jul 2026 Proposed LCD published; comment period running
- 24 Jul 2026 Proposed LCD issued; comment period under way
- 30 Mar 2026 Board expects positive decision near term
Closed · 2
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