MDxHealth reported Q1 revenue rose 13% year over year while the company discontinued its Resolve UTI test and lab operations in Plano, Texas. The company cited a reimbursement landscape it described as increasingly uncertain after a recent Medicare policy reversal by Novitas. MDxHealth said Medicare administrative contractor Novitas is attempting to recoup $10.4 million tied to a retrospective review of Resolve MDx claims. The company said exiting the business line will help streamline operations and redirect resources toward integration of its recently acquired ExoDx business and its core prostate cancer precision diagnostics focus. The shift included lowering 2026 revenue guidance for the core cancer business excluding Resolve to a range of $110 million to $115 million, implying 20% to 26% year-over-year growth in that core segment. The decision reflects how lab and diagnostics economics increasingly hinge on stable payer coverage determinations and defensible coding and reimbursement frameworks.