AVITA Medical Announces National Medicare Physician Payment Framework And Simplified Billing Codes For RECELL Procedures In 2027

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• CMS finalizes nationally published physician valuations; CMS's four-code structure simplifies procedure reporting beginning January 1, 2027
  

VALENCIA, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- AVITA Medical^®, Inc. (NASDAQ: RCEL, ASX: AVH), a leading therapeutic acute wound care company, today announced that the Centers for Medicare & Medicaid Services (CMS) has finalized national physician valuations for skin cell suspension autograft (SCSA) procedures performed using RECELL® under the Calendar Year 2027 Medicare Physician Fee Schedule.

Effective January 1, 2027, nationally published Relative Value Units (RVUs), which Medicare uses to calculate physician payment, will replace valuations set by regional Medicare Administrative Contractors (MACs). This change coincides with CMS putting into place a simplified family of four Current Procedural Terminology (CPT) billing codes to replace the current eight-code structure.

Together, these changes are expected to simplify procedure reporting and give physicians a clearer, more consistent basis for understanding Medicare payment when treating patients with burns and other serious skin injuries.

“Clinicians should be able to focus on helping patients heal, with clear expectations around physician payment,” said Cary Vance, President and Chief Executive Officer of AVITA Medical.“These changes bring simpler billing and greater payment predictability to physicians using RECELL. For AVITA, they strengthen the foundation for broader adoption as we continue to make RECELL a standard of care for patients with burn and wound injuries.”

Simpler reporting for treating clinicians

The new Category I CPT code family combines reporting for skin harvesting, cell preparation and application into a single, bundled SCSA procedure structure. Key changes include:

• Fewer codes: Four codes replace the existing eight-code family, simplifying reporting of the steps involved in treatment.
• Consistent treatment-area increments: Codes distinguish the body area treated and report treatment in increments of 100 square centimeters, with percentage-of-body-area reporting for infants and children.
• Simpler reporting across RECELL systems: The new structure removes separate coding distinctions for manual and automated cell preparation.
• National physician valuations: CMS-published RVUs replace regionally determined MAC valuations, providing a common national basis for calculating Medicare physician payment.

Medicare payment across care settings

In the inpatient setting, Medicare pays hospitals for cases involving RECELL through the Medicare Severity Diagnosis-Related Group (MS-DRG) system, a single, case-based payment determined by the patient's condition and procedures performed. The RECELL System is not reimbursed separately but is included among the resources used to treat the patient. Physicians receive separate payment for their professional services.

In its separate 2027 hospital outpatient and ambulatory surgery center (ASC) payment rule, CMS finalized facility payment assignments and rates for the new SCSA code family in both settings.

The new physician valuations establish the basis for Medicare payment to physicians for the professional services associated with SCSA procedures performed using RECELL, separate from facility payments to hospitals and ASCs. Medicare coverage policies continue to apply.

Physician work RVUs for the new SCSA codes

CMS adopted the physician work RVUs recommended by the American Medical Association/Specialty Society RVS Update Committee, without modification:

Treatment area	Initial 100 square centimeters or less*	Each additional 100 square centimeters or part thereof*
Trunk, arms, and/or legs	10.97	0.59
Specified areas including the face, scalp, neck, hands and feet and/or fingers and toes	11.28	0.98

*For infants and children, the codes also provide for reporting based on 1% of body area and additional 1% increments, as applicable. Descriptions above summarize the code categories.

The physician work RVUs described reflect the time, skill, and intensity involved in providing a service. They are one component of Medicare payment which also accounts for practice expense and malpractice expense RVUs, geographic adjustments, and the annual dollar conversion factor.

About RECELL
RECELL uses a small sample of a patient's own healthy skin to prepare a suspension of skin cells that clinicians can spray directly onto a wound. Depending on the wound and approved indication, clinicians use RECELL alone or with a skin graft to support healing while reducing the amount of donor skin required compared with conventional skin grafting.

About CPT Codes
Current Procedural Terminology, or CPT, codes identify medical procedures and services when clinicians and facilities submit insurance claims. The American Medical Association maintains the code set, while CMS establishes the relative values used to calculate Medicare physician payments. The new SCSA code family takes effect January 1, 2027.

About AVITA Medical, Inc.

AVITA Medical® is a leading therapeutic acute wound care company delivering transformative solutions. Our technologies are designed to optimize wound healing, effectively accelerating the time to patient recovery. At the forefront of our platform is RECELL®, approved by the FDA for the treatment of thermal burn and trauma wounds. RECELL harnesses the healing properties of a patient's own skin to create Spray-On SkinTM, offering an innovative solution for improved clinical outcomes at the point-of-care. In the U.S., AVITA Medical also holds the exclusive rights to market, sell, and distribute Cohealyx®, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to manufacture, market, sell, and distribute PermeaDerm®, a biosynthetic wound matrix.

In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in Europe, have TGA certification in Australia, and are listed with Medsafe in New Zealand; RECELL is PMDA-approved in Japan.

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Authorized for release by the Chief Financial Officer of AVITA Medical, Inc.

©2026 AVITA Medical. AVITA Medical®, the AVITA Medical logo, Cohealyx®, RECELL®, RECELL GO®, and Spray-On Skin^TM Cells are trademarks of AVITA Medical. PermeaDerm® is a registered trademark owned by Stedical Scientific, Inc. All other trademarks are the properties of their respective owners.

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