Sonic hit by government cuts

Sonic Healthcare's share price has been hit by proposed cuts to Medicare's pathology budget.

The Government recently announced its Mid-Year Economic and Fiscal Outlook, which included various Medicare fee cuts to lab and imaging services. The share price of Australia’s largest pathology provider, Sonic Healthcare, promptly dropped 10%.

Sonic estimates the changes might cause a $50m a year drop in revenue and reduce 2017’s earnings before interest, tax, depreciation and amortisation (EBITDA) by 5–6%.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles