Report
Chris Kallos

Medicare Indexation Freeze Ends as the New Fiscal Year Begins; Maintaining FVE for Primary

We expect the much-anticipated reinstatement of Medicare rebate indexation for general practitioners effective July 1, 2018 to be positive for Primary Health Care's medical centre division, given that over 95% of services are bulk-billed and therefore highly sensitive to Medicare funding. This regulatory change underpins our assumed 2.5% uplift in growth for the division in fiscal 2019 and is incorporated into our five-year revenue CAGR of 2.9%. As such, our fair value estimate of AUD 4.00 per s...
Underlying
Healius

Primary Health Care is a medical center operator engaged in providing diagnostic imaging services and pathology services. Co. operates three principal operating segments: Medical Centres, which provides a range of services and facilities to general practitioners, specialists and other health care providers; Pathology, which provides pathology services; and Imaging, which provides imaging and scanning services from stand-alone imaging sites and from within the consolidated entity's medical centres.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Chris Kallos

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