Business Description:
Primary Health Care Limited (PRY) is a service company to medical and allied health professionals offering a range of medical and related services in its network of medial centres and pathology centres across Australia. PRY is also a provider of healthcare technology solutions to medical practitioners, medical practices and hospitals.

Strategy Analysis:
PRY's strategy is to build scale through integration of a range or related health services. High patient attendance levels flows through to pathology and radiology volumes to lower the unit cost of testing. Scale will also enable PRY to negotiate more favourable buying terms for consumables. Primary Health Care reported NPAT down 40.7% to $78.29m for the year ended 30 June 2011. Revenues from ordinary activities were $1.32bn, up 2% from last year. Diluted EPS was 15.8 cents compared to 27.7 cents last year. Net operating cash flow was $160.41m compared to $225.04m last year. The final dividend declared was 5 cents, taking the full year dividend to 8 cents compared with 25 cents last year. Looking ahead, the company is well positioned to be able to leverage off its extensive footprint and low cost structure base to achieve EBITDA and margin growth in each of its divisions in FY2012, as well as provide payers with better outcomes for their expenditure.