Charles R. Goulding and Preeti Sulibhavi explain how Hanger, Inc.’s acquisition of Coapt, LLC propels prosthetic care into a new era of neural control, accessibility, and innovation.
In a strategic move poised to reshape the landscape of prosthetic technology, Hanger, Inc., a leading provider of orthotic and prosthetic (O&P) care, has acquired Coapt, LLC, a pioneer in myoelectric pattern recognition systems. This acquisition not only merges two innovators in the field but also signifies a significant advancement in the integration of neural interface technologies into mainstream prosthetic care.
Hanger, Inc.: A Legacy of Innovation and Care
Founded in 1861 by James Edward Hanger, the first documented amputee of the American Civil War, Hanger, Inc. has been at the forefront of prosthetic innovation for over 160 years. After losing his leg in battle, Hanger designed a more functional prosthetic limb, leading to the establishment of J.E. Hanger, Inc. This spirit of innovation has continued, with Hanger evolving into a comprehensive provider of O&P medtech services and products.
Headquartered in Austin, Texas, Hanger operates more than 925 Hanger Clinic locations across 49 states and the District of Columbia, employing over 6,400 individuals, including 1,700 clinical providers. The company is organized into two main segments: Patient Care, which delivers personalized O&P services, and Products & Services, which supplies O&P devices and components to a broader healthcare market. Hanger’s commitment to research and education is exemplified by the Hanger Institute for Clinical Research and Education, which advances evidence-based care and innovation in the industry.
Coapt, LLC: Advancing Prosthetic Control Through Neural Technology
Established in 2012, Coapt, LLC is a Chicago-based company specializing in human-machine interface technologies for upper-limb prosthetics. Their flagship product, the Coapt Gen2® Complete Control system, utilizes advanced myoelectric pattern recognition to interpret muscle signals from a user’s residual limb, allowing for intuitive control of prosthetic hands, wrists, and elbows. This technology represents a significant leap forward in prosthetic functionality, enabling users to perform complex tasks with greater ease and natural movement.
Coapt’s system is compatible with over 400 prosthetic configurations and integrates seamlessly with surgical techniques like Targeted Muscle Reinnervation (TMR) and Osseointegration. The company’s commitment to enhancing user experience is further demonstrated by its user-friendly mobile app, Control Companion™, which allows for personalized adjustments and training.
The Significance of the L6700 Medical Reimbursement Code
A pivotal development in Coapt’s journey is the recent approval of the L6700 Healthcare Common Procedure Coding System (HCPCS) Level II code by the Centers for Medicare & Medicaid Services (CMS). Effective April 1, 2025, this code covers the addition of myoelectric pattern recognition control modules to upper-limb prostheses, marking the first time such advanced neural decoding hardware has received its own reimbursement classification.
The establishment of the L6700 code is a game-changer for the prosthetics industry. It facilitates consistent billing and reimbursement processes, thereby expanding access to cutting-edge prosthetic technologies for a broader patient population. This development underscores the clinical value of Coapt’s technology and paves the way for its integration into standard prosthetic care.
Implications of the Acquisition
The acquisition of Coapt by Hanger, Inc. represents a strategic alignment of clinical expertise and technological innovation. By incorporating Coapt’s advanced neural interface systems into its extensive network of clinics and services, Hanger is poised to enhance the quality of care and functional outcomes for individuals requiring upper-limb prosthetics.
This integration is expected to accelerate the adoption of intuitive prosthetic control systems, reduce barriers to access through improved reimbursement mechanisms, and foster further advancements in prosthetic technology. Patients will benefit from more natural and responsive prosthetic solutions, leading to improved independence and quality of life.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
Hanger, Inc.’s acquisition of Coapt, LLC signifies a transformative moment in the field of prosthetics, combining a rich legacy of patient-centered care with groundbreaking neural interface technology. The introduction of the L6700 reimbursement code further solidifies the clinical and economic viability of advanced prosthetic systems. Together, these developments herald a new era in prosthetic care, characterized by enhanced functionality, accessibility, and patient empowerment.
