A balloon catheter system configured to deliver one or more stimulation signal to a tissue comprises an expandable balloon disposed around a distal portion of a catheter, a plurality of electrodes, and an external sheath having a lumen sized to slidably accommodate the expandable balloon, catheter and the plurality of electrodes. The plurality of electrodes are flexibly distributed along a balloon length and are configured to deliver the stimulation signals to the tissue. The plurality of electrodes may preferably be disposed on a flexible frame coupled externally of the expandable balloon and in sliding engagement to the balloon during inflation and deflation. The flexible frame may further comprise one or more sensors. The external sheath is made of a non-conductive material and is configured to prevent delivery of the stimulation signals by the electrodes disposed along an inoperable length of the expandable balloon when the balloon is inflated.