Budget changes hit pathology stocks

Sonic Healthcare and Primary Health Care shares have fallen more than 4% and 6% respectively after the Federal Government proposed to cut healthcare funding in its latest budget. There are two major changes that could negatively impact Australia’s largest pathology labs (see Sonic and Australia's newest duopoly from 11 Dec 13 (Hold – $15.85)). The first is a proposed $5 reduction in Medicare Benefits Schedule rebates for visits to your GP. The second is a mandatory patient co-payment of $7 for bulk-billed visits. The effect of these changes is expected to be a small reduction in GP visits and, consequently, pathology...

Sonic Healthcare and Primary Health Care shares have fallen more than 4% and 6% respectively after the Federal Government proposed to cut healthcare funding in its latest budget.

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