Key issue for any medical clinic business is the the medicare 3...

Key issue for any medical clinic business is the the medicare 3 year indexation freeze on rates, the medicare review on chronic care items numbers and the pathology rebate cuts. First two directly effect Doctor billings- the third may effect the revenue clinics receive from pathology subtenants. As pathology companies earn less they will look to reduce the number of collection centre leases or the amount the leases cost by reducing lease amounts paid to medical clinics. These subtenancy leases are big contributors to clinics ebitda.