RufussGo forward profit now based on 35% personal exertion EBIT;...

Rufuss
Go forward profit now based on 35% personal exertion EBIT; more doctors, more EBIT, where existing infrastructure can support more than the dwindling number contracted at present. The new remuneration model shifts another $16 million of EBIT to the 39/40 doctors; to make it back, given EBITDA margins fall to around 20%, you need another $80 million revenue, or a near doubling of throughput from existing levels, which equals 40 more doctors! PRY can achieve an increase in margins to a more respectable mid 20s range by removing head office costs and the Board, saving several million dollars. They can also deal more aggressively with the existing doctor group, as not as captive to their individual bargaining power as currently exercised over existing non-executive directors.

The doctors have been reckless in their demands and achieved what they believed was their just reward; the cost is attracting PRY to their register and having to contemplate the inconvenience of exercising their initial threat and walking out, to go their own way all over again as many of them enter their twilight years.

Drats...this Ed bloke threatens their comfy existence, disturbing their unilateral command over self determined $1 million annual salaries earned in a structure that gives them the freedom to run their own show without any need to justify their worth and performance record.