Cyberonics reneged on its "Lifetime Reimbursement Guarantee". Click on the image to learn how you can help...
Showing posts with label Centers for Medicare & Medicaid Services. Show all posts
Showing posts with label Centers for Medicare & Medicaid Services. Show all posts

Friday, August 21, 2015

“Your words “I am doing very well health wise” resonate loudly and clearly for me.”

From: Herbert Stein [mailto:fabrik@bellsouth.net]
Sent: Friday, August 21, 2015 10:29 AM
To: 'Julie Ottaviani'
Cc: President of the United States; Madam Secretary Sylvia Matthews Burwell, United States Secretary of Health and Human Services
Subject: RE: VNS Therapy for Depression - Implementation and Enforcement of the Law.

Dear Julie,

Thank you for taking the time to share your continuing good news with us. 

Your words “I am doing very well health wise” resonate loudly and clearly for me.  If only the same can be said for Secretary Burwell and her entire organization.  It is the reason I continue to remain persistent in achieving our goal of rightful medical coverage for Joyce, you and others that continue to benefit from the VNS Therapy treatment option.

Mental health patients for centuries have been ridiculed, discriminated against challenged and to this very day are still not quite on par for health insurance coverage as those patients having other medical challenges.  This issue is exemplified by medical coverage for the epilepsy patient and the need for the adjudicated decision of December 30, 2014 for the existing implanted depression patients and still to be told by the gatekeepers, if denied there is an available appeal process.

Joyce and I are reasonably well certainly not owing to the fact that the aging process sucks.  We continue battling Joyce’s PSP (Progressive Supranuclear Palsy).  Despite this very difficult challenge her depressive illness remains non-existent for which we are thankful and definitively attribute that remarkable result to the VNS Therapy.

Once again, thank you for writing and importantly allowing me to publicly share another voice in our quest to see the “Implementation and Enforcement of the Law” on behalf of our fellow implanted patients.

As always, I wish you continued wellness and all the good you’d wish for yourself.

Sincerely,

Herb

Joyce and Herbert Stein

1008 Trailmore Lane

Weston, FL 33326-2816

(954) 349-8733

vnsdepression@gmail.com

http://www.vnstherapy-herb.blogspot.com

http://www.vnstherapy.wordpress.com

---------------------------------------------------------------

NOTICE OF CONFIDENTIALITY / Disclaimer

---------------------------------------------------------------

Disclaimer: This E-Mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521 and is legally privileged. The information contained in this E-Mail is intended only for use of the individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you receive this E-Mail in error, please notify the sender immediately at the email address and/or phone number above and delete the information from your computer. Please do not copy or use it for any purpose nor disclose its contents to any other person.

CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, destroy all copies of the original message, and do not disseminate it further. If you are the intended recipient but do not wish to receive communications through this medium, please advise the sender immediately.

From: Julie Ottaviani [mailto:julieottaviani@aim.com]
Sent: Friday, August 21, 2015 6:59 AM
To: fabrik@bellsouth.net
Subject: Re: VNS Therapy for Depression - Implementation and Enforcement of the Law.

Dear Herb and Joyce,

I just wanted to let you know how much I appreciate all that you are doing for our cause.  I am doing very well health wise and hope the same is true for you both.  Herb, your tireless efforts do not go unnoticed.  I read each and every email you send and save them to a file.  I hope Madam Secretary Burwell does the same and more.  It is unfortunate that the pace of our leaders in Government Health as well as most areas is slow and slower.  But we are strong and VNS has made us so.  We stand with you in this fight and we will be persistent

Keep the Faith

Julie Ottaviani

You may use this email in any way you deem useful..

Julie Ottaviani
julieottaviani@aim.com

-----Original Message-----
From: Herbert Stein <fabrik@bellsouth.net>
To: Madam Secretary Sylvia Matthews Burwell, United States Secretary of Health and Human Services <sylvia.burwell@hhs.gov>
Cc: President of the United States <president@whitehouse.gov>
Sent: Thu, Aug 20, 2015 5:51 pm
Subject: VNS Therapy for Depression - Implementation and Enforcement of the Law.

Dear Madam Secretary Burwell,

I’m terribly sorry to have to once again bore you with the fact that either you and/or your subordinates are not carrying out the duties, obligations and/or law with which you are entrusted.

December 30, 2014 an appeal was adjudicated rendering the NCD of May 4, 2007 not applicable to all the patients implanted prior to May 4, 2007.  Depression patients with Vagus Nerve Stimulators, a medical device implant, are rightfully entitled, Doctrine of Continuity of Care, to medical care and replacement when necessary without having to be denied and/or responsible to appeal any denials.

The issue I now bring to your attention is the “implementation” and “enforcement” of the law and apparent lack of distribution of this law and acknowledgement by MAC, Regional agencies, State agencies, contractors etc. under your authority as evidenced by the communications I’ve received from various members of your staff and agencies that I have already shared with you and others. 

The individual, with whom I chatted with today, a member of your agencies, confirmed “the left hand not knowing what the right hand is doing.”

I would finally and once and for all appreciate your getting your agencies on the same page.  I would also appreciate a communication from your office that all agencies, contractors etc. on down the line acknowledge and will implement and enforce the law.

As always, I wish all those reading my missives good health and all the good you’d wish for yourselves.

Sincerely,

Herb

Joyce and Herbert Stein

1008 Trailmore Lane

Weston, FL 33326-2816

(954) 349-8733

vnsdepression@gmail.com

http://www.vnstherapy-herb.blogspot.com

http://www.vnstherapy.wordpress.com

Thursday, August 20, 2015

VNS Therapy for Depression - Implementation and Enforcement of the Law.

From: Herbert Stein [mailto:fabrik@bellsouth.net]
Sent: Thursday, August 20, 2015 5:51 PM
To: Madam Secretary Sylvia Matthews Burwell, United States Secretary of Health and Human Services
Cc: President of the United States
Subject: VNS Therapy for Depression - Implementation and Enforcement of the Law.

Dear Madam Secretary Burwell,

I’m terribly sorry to have to once again bore you with the fact that either you and/or your subordinates are not carrying out the duties, obligations and/or law with which you are entrusted.

December 30, 2014 an appeal was adjudicated rendering the NCD of May 4, 2007 not applicable to all the patients implanted prior to May 4, 2007.  Depression patients with Vagus Nerve Stimulators, a medical device implant, are rightfully entitled, Doctrine of Continuity of Care, to medical care and replacement when necessary without having to be denied and/or responsible to appeal any denials.

The issue I now bring to your attention is the “implementation” and “enforcement” of the law and apparent lack of distribution of this law and acknowledgement by MAC, Regional agencies, State agencies, contractors etc. under your authority as evidenced by the communications I’ve received from various members of your staff and agencies that I have already shared with you and others. 

The individual, with whom I chatted with today, a member of your agencies, confirmed “the left hand not knowing what the right hand is doing.”

I would finally and once and for all appreciate your getting your agencies on the same page.  I would also appreciate a communication from your office that all agencies, contractors etc. on down the line acknowledge and will implement and enforce the law.

As always, I wish all those reading my missives good health and all the good you’d wish for yourselves.

Sincerely,

Herb

Joyce and Herbert Stein

1008 Trailmore Lane

Weston, FL 33326-2816

(954) 349-8733

vnsdepression@gmail.com

http://www.vnstherapy-herb.blogspot.com

http://www.vnstherapy.wordpress.com

clip_image002

---------------------------------------------------------------

NOTICE OF CONFIDENTIALITY / Disclaimer

---------------------------------------------------------------

Disclaimer: This E-Mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521 and is legally privileged. The information contained in this E-Mail is intended only for use of the individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you receive this E-Mail in error, please notify the sender immediately at the email address and/or phone number above and delete the information from your computer. Please do not copy or use it for any purpose nor disclose its contents to any other person.

CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, destroy all copies of the original message, and do not disseminate it further. If you are the intended recipient but do not wish to receive communications through this medium, please advise the sender immediately.

Wednesday, July 29, 2015

VNS Therapy for Depression - “HHS/CMS we have a failure to communicate!”

From: Herbert Stein [mailto:fabrik@bellsouth.net]
Sent: Wednesday, July 29, 2015 4:48 AM
To: Madam Secretary Sylvia Matthews Burwell, United States Secretary of Health and Human Services
Subject: VNS Therapy for Depression - “HHS/CMS we have a failure to communicate!”

Dear Madam Secretary Burwell,

I’d like to take a moment to commend and compliment Ms. Gaetana Marshall, M.S. Health Insurance Specialist out of your Atlanta, GA regional office for the time and effort she put into listening to my explanations and researching the document(s) you folks in D.C. recently sent to her office relating to my supposed issue(s) that I have been advocating to resolve these past two years.  Ms. Marshall in turn forwarded the documents (copy and pasted below) for me to read and I in turn share for everyone’s perusal.  At the same time I would also like to acknowledge the concerted efforts on the part of Ms. Courtney S. Turner, MPH - Office of Hearings and Inquiries, Medicare Ombudsman Group, Division of Medicare Ombudsman Assistance who respectfully assisted in my advocacy and has helped several of the VNS Depression patients receive medical care these past couple of years and to Ms. Stephany Terry – CMS for following up on my telephone call to Ms. Lisa Spradlin – CMS yesterday in the absence of Ms. Courtney Turner. 

I’m sure Madam Secretary that you are familiar with these famous words, “Houston, we have a problem!”  And shortly thereafter the intellectual minds at another of our government agencies, NASA, effectively, efficiently and expeditiously went to work solving a life and death crisis in a matter of days.

Well Madam Secretary I’ve come to the conclusion the same is not true for your agencies handling and effectiveness as it relates to the health care for the implanted VNS Depression patients.

In fact what I discern in this instance is “HHS/CMS we have a failure to communicate!” as well as what appears to be a classic illustration of the Tower of Babel.

In absolutely none of my advocacy/activism these past two (2) years have I advocated for approval of the VNS Therapy for Depression or the reversal of the May 4, 2007 denial.  That is the responsibility of the sponsor, Cyberonics and yet the communications I constantly receive from your agency refer me to the CMS denial decision of May 4, 2007.  Believe me I’ve carefully read that decision a number of times and I am cognizant of its contents.

What I specifically and rightfully have advocated for is care and health insurance coverage which CMS egregiously, immorally and/or unconscionably omitted or overlooked in that decision whether through ineptitude, ignorance or failure to grandfather-in-care for all the study subjects and patients implanted with this medical device prior to May 4, 2007 in accordance with the doctrine of “Continuity of care” contained in several CMS documents.

Obviously not all your subordinates understand, comprehend or obtained any message that CMS recognizes and acknowledges the medical doctrine of “Continuity of Care” as was reiterated by CMS most recent DBA adjudicated decision of December 30, 2014. These patients are rightfully to be cared for and covered by medical insurance.  The CMS decision of May 4, 2007 does not apply to these previously implanted patients.  Is that too difficult for your people to read and comprehend?

Page 62

“With respect to those

beneficiaries, say the Aggrieved Parties, the NCD does not afford coverage for:  (1) “the

interrogation and calibration of a VNS therapy device implanted and deemed to be

reasonable and medically necessary when implanted for TRD”; or (2) “for the

replacement of the implanted pulse generator device upon battery expiration, when

required[.]”  AP Statement ¶ 43.  According to the Aggrieved Parties, those omissions

conflict with:  (1) “continuity of care” standards that are “widely accepted within the

medical community (i.e., a physician should not discontinue treatment that is effective for

a patient)”; (2) “well-accepted medical standards of care that acknowledge that it is

unsafe for beneficiaries to have an implanted medical device that is not properly

calibrated, monitored, or is otherwise non-functional”; and (3) “CMS policy statements

wherein CMS has recognized that continuing Medicare coverage for beneficiaries who

received Medicare-covered durable medical equipment (DME) before it was non-covered

‘helps avoid disrupting the continuity of care for the beneficiaries . . . .’” Id. ¶¶ 40-42

(quoting 78 Fed. Reg. 40,836, 40,877 (July 8, 2013)).”

Page 63

“CMS states that it “leaves decisions

regarding the maintenance of already-implanted devices to contractor discretion” and that

such decisions “are, appropriately, made on an ad hoc basis after the local contractor’s

consideration of the applicable facts.”  Id. We understand from these representations that

CMS and its contractors do not, or will not in the future, apply NCD 160.18(C) to bar

coverage of maintenance services – including replacement of the implanted VNS device

upon battery expiration – for beneficiaries who received the VNS device prior to May 4,

2007.”

Yet I continue to receive communications from your agency citing the May 4, 2007 decision.  Obviously the proper communications from your office in the words of former President Regan are not having a “trickle down” effect.  For the umpteenth time please have your agency and your subordinates notify MAC, Regional Agencies, State Agencies, contractors etc., etc. that based upon the reaffirmation of the DBA adjudicated decision of December 30, 2014 that all VNS Depression patients implanted prior to May 4, 2007 are to be covered for medical care and health insurance coverage and there should be absolutely no need for these patients to have go through an appeals process as a result of your agencies inability to communicate this fact with one another.

Why must I continue to receive communications citing denials and reference to the May 4, 2007 as was recently illustrated in a communication dated July 17, 2015 from Kristen Dixon - Health Insurance Specialist - Atlanta Division of Financial Management & Fee for Service Operations (see below) and an earlier letter dated April 17, 2015 from Patrick Conway, MD, MSc - Acting Principal Deputy Administrator - Deputy Administrator for Innovation and Quality – CMS Chief Medical Officer (see below).

Why not a letter, directive or whatever document you issue to your MAC agencies, Regional office agencies, State Agencies, contractors etc., etc. apprising them of the doctrine of “Continuity of Care” and the DBA adjudicated decision of December 30, 2014 favorably affecting the VNS Therapy patients for depression?  Stop all this negativity, denials, oversight and appeal non-sense being referenced to the May 4, 2007 denial decision when in fact the December 30, 2014 decision clearly indicates these medical device implanted patients have rights to medical care and health insurance coverage.

And to those private health insurance CEO’s I have also addressed and hounded you too have unjustly denied care and medical insurance coverage to these patients and similarly you should be issuing directives to your staff that these patients should be properly cared for and rightly insured.    

Take a positive approach to wellness.  Advise all your agencies and health insurance carriers that the previously implanted VNS patients for depression are rightfully entitled to medical care and coverage without need for any denials or subsequent appeals!

Lastly, I’ll also take the liberty to remind you and all those agency staffers who read this communication:

clip_image001

Sincerely,

Herb

Joyce and Herbert Stein

1008 Trailmore Lane

Weston, FL 33326-2816

(954) 349-8733

vnsdepression@gmail.com

http://www.vnstherapy-herb.blogspot.com

http://www.vnstherapy.wordpress.com

---------------------------------------------------------------

NOTICE OF CONFIDENTIALITY / Disclaimer

---------------------------------------------------------------

Disclaimer: This E-Mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521 and is legally privileged. The information contained in this E-Mail is intended only for use of the individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you receive this E-Mail in error, please notify the sender immediately at the email address and/or phone number above and delete the information from your computer. Please do not copy or use it for any purpose nor disclose its contents to any other person.

CONFIDENTIALITY NOTICE: This e-mail message including attachments, if any, is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, destroy all copies of the original message, and do not disseminate it further. If you are the intended recipient but do not wish to receive communications through this medium, please advise the sender immediately.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

From: Marshall, Gaetana (CMS/CMHPO) [mailto:Gaetana.Marshall@cms.hhs.gov]
Sent: Tuesday, July 21, 2015 7:59 AM
To: Herbert Stein (fabrik@bellsouth.net)
Subject: C1502484607 Re. Mr. H. Stein

Good morning Mr. Stein,

Since our telephone conversation on Friday I have had an opportunity to follow up from discussions we had and to speak with a few of my CMS colleagues who have responsibility for standard Medicare A/B policy decisions.  Notably, I have spoken to Courtney Turner who works with the CMS Ombudsman team and the management team for Medicare A/B policy decisions.

They have provided me with the following items for your records and information:

A. A Beneficiary Casework Call (August 2014) presentation regarding VNS coverage.

B. A Sept. 24, 2013 letter from the Atlanta Division of Financial Management Fee for Service Operations responding to the Honorable Debbie Wasserman Schultz on behalf of your wife regarding health insurance coverage of Vague Nerve Stimulation (VNS) for the treatment of depression.

C. The CMS Ombudsman’s response from January 2015 regarding the Division of Appeal Board’s (DAB) decision.

D. The April 17, 2015 letter from the CMS Center for Clinical Standards and Quality formally responding to you (on behalf of Secretary of Health and Human Services) regarding the DAB decision.

E. A July 17, 2015 letter from the Atlanta Division of Financial Management Fee for Service Operations responding to you regarding the health insurance coverage of Vague Nerve Stimulation (VNS) for the treatment of depression.

The documents above are official CMS responses to your questions regarding Medicare Advantage plan coverage for VNS treatment for depression since MA coverage is established by standard A/B policy.  Additionally, the 2014/2015 DAB appeal decision attached upheld CMS’ policy. As such, the attached CMS letters are considered comprehensive and fully respond to questions regarding health insurance coverage of VNS for treatment of depression.

I would like to thank your patience and for the opportunity to speak with you and thank you for your advocacy regarding those suffering with depression and VNS therapy.

It was my pleasure to assist you.

Very truly,

Gaetana Marshall

Ms. Gaetana Marshall, M.S.

Health Insurance Specialist

US Department of Health and Human Services

Centers for Medicare and Medicaid Services

Division of Medicare Health Plans Operations

61 Forsyth Street, Suite 4T20

Atlanta,  Georgia  30303

Ofc:  404-562-3562

Fax: 443-380-5963

Email: gaetana.marshall@cms.hhs.gov

Please consider the environment before printing this email.
INFORMATION NOT RELEASABLE TO THE PUBLIC UNLESS AUTHORIZED BY LAW:

This information has not been publicly disclosed and may be privileged and confidential.  It is for internal government use only and must not be disseminated, distributed, or copied to persons not authorized to receive the information.  Unauthorized disclosure may result in prosecution to the full extent of the law.  If you are the unintended recipient of this information please notify the sender.

///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

clip_image003clip_image005

clip_image007clip_image009

clip_image011clip_image013

clip_image015clip_image017

clip_image019clip_image021

clip_image023

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

clip_image024

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

clip_image025

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

clip_image026

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

clip_image027

clip_image028

Tuesday, May 28, 2013

Epilepsy Device Pioneer Cyberonics Still Evolving After 25 Years

Epilepsy Device Pioneer Cyberonics Still Evolving After 25 Years
Bernadette Tansey    5/28/13      Follow@tanseyverse 
Long before the explosion in the personal electronics field brought us iPods and iPhones, biomedical engineers were making devices to interact with the personal electrical “circuitry” that regulates the human heart and other organs. Back in 1958, Minneapolis, MN-based Medtronic produced its first battery-operated, portable pacemaker to stimulate nerves in the malfunctioning heart. It looked something like an old Sony Walkman cassette player strapped around the waist.

In 1987, Texas entrepreneurs founded a company to try a nerve stimulation device as a treatment for epilepsy. The units now marketed by that company, Houston, TX-based Cyberonics (NASDAQ: CYBX) still have the same basic design: a surgeon implants a unit called a generator under the skin of the upper chest, then threads an electrode from the generator up through the side of the neck. The thin wire, wrapped around the vagus nerve, delivers mild electrical pulses designed to head off seizures. The device is supposed to reduce the frequency of epileptic seizures.

The size of Cyberonics’ generator unit, however, has changed since the first model was approved by the FDA in 1997.

Cyberonics CEO Daniel Moore keeps one of the company’s first models on his desk.

“People say it was the size of a hockey puck,” Moore says. “It wasn’t quite that big.”

Recent improvements in battery technology have allowed Cyberonics to shrink the devices it sells today to the size of a watch face, Moore says. And, like pacemaker manufacturers, Cyberonics has been working to make its Vagus Nerve Stimulation (VNS) Therapy system more responsive to individual needs. The company is also tapping the interactive potential of the units as collectors of data for patients and their physicians.

The latest round of technical improvements come as Cyberonics has largely recovered from a big setback a few years ago. The company hit a low point in May 2007, when Medicare said there wasn’t enough evidence to support use of the Cyberonics device for patients with treatment-resistant depression. The company saw its sales drop 8 percent the following year, before it regained its momentum in 2009, with renewed focus on epilepsy. Sales climbed about 15 percent last year to $218.5 million.

The Texas firm faced no clear competitors when it began developing its implantable units for epilepsy in the 1980s. It was a different situation than the one faced by Medtronic in 1958. Back then, the Minneapolis company’s portable, external cardiac pacemaker helped heat up a race to market the first pacemaker that could be implanted in the body—which Medtronic (NYSE: MDT) did in 1960.
The first task for Cyberonics was to persuade doctors and the FDA that its implantable VNS device had a place in the epilepsy treatment spectrum.

In the United States, nearly 3 million people have epilepsy, according to the Epilepsy Foundation, a non-profit patient support group. About half of those diagnosed can get seizure relief from the first drug prescribed, Moore says. If not, doctors try one medicine after another, alone or in combinations, to find a regimen that works. For two-thirds of patients, drugs will curb the disorder, Moore says. But that leaves a substantial population whose seizures aren’t fully controlled. Cyberonics estimates that about 400,000 people in the United States are candidates for its product.

The company’s VNS devices usually deliver a 30-second electrical pulse to the vagus nerve about every five minutes, but the timing and strength of the electrical burst is programmed by a doctor using a handheld computer. The National Institute of Neurological Disorders and Stroke estimates that the therapy reduces the frequency of seizures by an average of 20 to 40 percent. Patients with the device keep taking anti-epilepsy medication, but they may be able to reduce the dose.

In 1997, Cyberonics’ device was approved in the United States for people over the age of 12 who suffer from partial seizures that resist drug treatment. Partial seizures arise in a specific area of the brain, rather than across the whole brain.

The epilepsy device was generating more than $100 million in annual revenues by 2007. But that was a rocky year. Cyberonics had spent millions on R&D to prove that the VNS system could also be effective in depression that doesn’t respond to existing drugs, a potentially larger market than epilepsy. The FDA had approved the device in 2005 for people whose depression was resistant to drug therapy. But Medicare administrators decided in 2007 not to reimburse for the device after reviewing evidence on its benefits and patients’ needs.

At that point, Moore says, the company was losing more than $50 million a year and held $132.5 million in debt. Dissident Cyberonics shareholders, backed by activist investor Carl Icahn, pressured the company to replace three board members. Cyberonics then brought in Moore, a veteran executive from Boston Scientific, as its new CEO.

Moore refocused the company on expanding its epilepsy franchise in the United States and internationally. About 19 percent of sales now come from 70 countries worldwide. Cyberonics, with 570 employees, has been profitable since 2009. The company has paid off the $132.5 million in obligations that burdened it in 2007.

“That debt is gone,” Moore says.

Cyberonics has continued to run clinical trials in depression, and recently re-submitted its case for reimbursement to the Centers for Medicare & Medicaid Services (CMS).

Epilepsy, therefore, still accounts for most sales of the VNS device. Of the approximately 125,000 people newly diagnosed with epilepsy in the United States, about 15,000 to 24,000 are potential candidates for the Cyberonics product, Moore says. That gives the company room for expansion—it treats about 4,000 new U.S. patients a year.

Meanwhile, Cyberonics has been working on successive generations of its device to adapt the technology to individual patients’ needs. Although the VNS device can reduce seizures to some extent through a scheduled series of electrical bursts, an attack can begin between these intervals. Cyberonics provides a supplementary handheld magnet that patients can sweep over the implanted generator in their chests to initiate a pulse when they feel a seizure coming on.

Batteries in the devices are now smaller, and some units can turn themselves off between pulses to prolong battery life. The battery’s life span is important because the generator must be replaced by another surgery when the battery runs down. Batteries now last about three to eight years, depending on the pattern of use for the individual patient, Moore says.

The sixth generation VNS device, AspireSR, is now in development. It is designed to monitor the patient’s heart rate for signs that a seizure may be beginning, and fire off a pulse in response.

Cyberonics is also working on a number of new features, including rechargeable batteries and a device called ProGuardian—an external heart rate monitor to alert patients or their caregivers of impending seizures. Another product in development called Relay would wirelessly transmit data about the patient to a doctor’s computer.

But meanwhile, competitors are also innovating. Cyberonics’ main competition comes from existing anti-epilepsy drugs and new medicines in development, according to its annual report. But rivals are also emerging among device makers. Seattle-based NeuroVista, for one, is developing a device that can provide advance warning to patients about an oncoming epileptic seizure, so they can find a safe place to lay down.

Cyberonics’ forerunner in neuromodulation, the medical device giant Medtronic, has tested its own device for epilepsy. Medtronic has been expanding the market for its Deep Brain Stimulation (DBS) Therapy, which is now FDA-approved for the treatment of Parkinson’s disease, essential tremor and other conditions. In 2010, Medtronic received clearance from regulators to sell the device in Europe, to treat adults with partial-onset seizures that drugs can’t fully control. An FDA panel recommended approval, with some conditions. But the U.S. regulatory agency asked Medtronic to conduct another pre-market study before giving it the green light to sell the device here. Medtronic is in discussions with the FDA on other routes to make the therapy available in the U.S.

Two other companies have gotten European regulatory clearance for their own vagus nerve stimulation devices: CerebralRx of Israel, and Neurotech , which was acquired in November by Sorin Group of Milan, Italy. In February, an FDA panel recommended approval of an anti-epilepsy device made by Mountain View, CA-based NeuroPace. Its RNS System consists of electrodes in the brain that detect abnormal electrical activity and respond with electrical impulses.

Three other companies are working on various non-invasive neuromodulation technologies to treat epilepsy, depression, or both—without implanting a device in the body. Two are US-based: NeuroSigma of Los Angeles, CA, and Neuronetics of Malvern, PA.

Cyberonics has an alliance with the third: CerboMed, a private company based in Erlangen, Germany. Its NEMOS t-VNS system, which includes an earplug-like device, is designed to stimulate a branch of the vagus nerve in the outer ear by sending a pulse through the skin. CerboMed’s device has received clearance for marketing in Europe for patients with epilepsy, depression, and pain. In September, Cyberonics said it had made an initial investment of about $2.6 million in Cerbomed and gained an exclusive option to market the NEMOS device worldwide as an epilepsy treatment.

That said, Cyberonics’ products still dominate the market in devices for epilepsy.

In December, as Cyberonics celebrated its 25th anniversary as a company, it announced that a total of 100,000 of its VNS devices had been implanted.

Moore says the company’s turnaround since 2007 owed much to the progress the company had already made.

“It was possible because there were so many good people here, and a good product,” Moore says.

Bernadette Tansey is a freelance journalist based in Berkeley, CA. Follow @tanseyverse