EXTON, PA — Lungpacer Medical Inc. has secured a significant reimbursement boost for its AeroPace® System, with the Centers for Medicare & Medicaid Services (CMS) granting New Technology Add-on Payment (NTAP) status under the Fiscal Year 2026 Inpatient Prospective Payment System (IPPS) Final Rule. The designation takes effect October 1, 2025.
The AeroPace System, an FDA-designated breakthrough device, delivers periodic neurostimulation to exercise the diaphragm in mechanically ventilated patients. Clinical data indicate it can strengthen the diaphragm by 50%, reduce the likelihood of 30-day ventilator dependency by 35%, and shorten ventilation time by an average of three days compared to standard care.
With NTAP approval, hospitals can receive up to 65% of the additional cost of the device — a maximum of $23,650.90 per Medicare case — on top of standard inpatient payments. The program is designed to ease early adoption of new therapies that offer substantial clinical improvements over existing options.
“NTAP approval from CMS for the AeroPace System recognizes its clinical value and the potential impact of this groundbreaking therapy to improve patient outcomes,” said Lungpacer President and CEO Doug Evans. He added that the milestone lowers financial barriers for hospitals and accelerates access for patients who could benefit from the technology.
The AeroPace System’s inclusion in the NTAP program underscores its potential to address a longstanding challenge in critical care — helping patients transition off mechanical ventilation more quickly and safely.
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