Investing.com -- Zynex Inc (NASDAQ: ZYXI ) stock dropped 5.6% after the medical technology company announced that Tricare, its largest insurance customer, will continue its temporary payment suspension.

The Colorado-based manufacturer of non-invasive medical devices for pain management, rehabilitation, and patient monitoring had previously appealed the suspension and met with Tricare officials in April to present data supporting why the suspension should be lifted.

"We received a response from Tricare, and they have decided to continue the temporary suspension while they conduct further review. As such, the temporary payment suspension will continue until Tricare makes its final decision," said Thomas Sandgaard, President and CEO of Zynex.

The continuation of the payment hold from a major revenue source creates uncertainty for the company’s near-term financial outlook. Tricare, which provides health insurance for military personnel and their families, represents a significant portion of Zynex’s customer base.

Zynex had been working to resolve the issue since the initial suspension was announced. The company has not provided a timeline for when a final decision might be reached.

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