Medicare Raises TULSA Procedure Reimbursement
Device makers and providers using the TULSA Procedure should plan for higher Medicare payments taking effect in the second half of 2027.
Updated on Nov. 8, 2026 in Corporate Finance
Profound Medical reported approximately $9.8 million in revenue for the three months ended September 30, 2026, and projects at least $25 million in 2026 revenue with a gross margin of 70% or higher. The medical device company's results are relevant to operators tracking Medicare reimbursement changes for minimally invasive procedures.
Why it matters
The projections rest in part on a final rule from the Centers for Medicare & Medicaid Services that increases Medicare reimbursement for the TULSA Procedure across treatment settings. For device makers and the providers who buy them, reimbursement changes of this kind alter the economics of adopting a new procedure, and the company says those effects are expected to show up in the second half of 2027.
Profound Medical reported about $9.8 million in third-quarter revenue and projects at least $25 million for full-year 2026 with a gross margin of 70% or higher. The company said existing cash and product sales should fund operating and capital needs for at least 12 months.
The players
Profound Medical
Profound Medical is a medical device company that sells the TULSA Procedure, a minimally invasive treatment, and reports revenue and margins to public markets.
Centers for Medicare & Medicaid Services
The Centers for Medicare & Medicaid Services is the federal agency that sets Medicare reimbursement rates, which determine what providers are paid for procedures.
Cook Medical
Cook Medical is a medical device maker whose distribution channel is expected by Profound Medical to ramp in 2027.
The details
The TULSA Procedure is subject to increased Medicare reimbursement under a final rule from the Centers for Medicare & Medicaid Services, and that rate change applies across treatment settings. Profound Medical also has a distribution channel through Cook Medical, which the company expects to ramp in 2027. The company expects the reimbursement effects to begin appearing in the second half of 2027.
Timeline
Quarter ended September 30, 2026: Profound Medical reports approximately $9.8 million in revenue.
Second half of 2027: Expected appearance of increased Medicare reimbursement effects for the TULSA Procedure.
2027: Expected ramp of the Cook Medical distribution channel.
Market Landscape
Medicare reimbursement rules set by CMS are a central driver of revenue for device makers whose procedures are paid through Medicare. Profound Medical's projections depend on a CMS final rule raising reimbursement for the TULSA Procedure.
Operators in medical device sales and provider purchasing should factor in how a Medicare reimbursement increase could shift procedure volume and pricing for minimally invasive treatments in the second half of 2027. Finance teams reviewing vendor relationships should note the expected 2027 ramp of distribution partnerships.
The takeaway
The key operating signal is that Medicare reimbursement changes can drive a device company's revenue forecast well ahead of when the payment increase reaches providers. Businesses that buy or sell procedure-based devices should calendar the second half of 2027 and watch for the Cook Medical ramp in its 2027 results.
Further reading
Track how company results like these tie into broader trends in Corporate Finance reporting.
Source note: This article includes information reported by TokenPost.
