Primary Health Care sounds a profit warning, its shares tank

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Primary Health Care expects its profits to fall about 5% this year because of a poor performance at its medical centres.

A short time ago, its shares were down 9% to $3.275.

The company says revenue is flat because of a freeze on the indexation of rebates from Medicare and lower than expected doctor numbers.

However, progress has been made with recruitment and retention of doctors.

Managing director Peter Gregg says the company aims to drive top‐line growth by becoming the partner of choice for healthcare practitioners, supported by flexible recruitment and the roll out of large‐scale medical centres. 

“Combining this with a greater focus on returns on investment, stronger free cash flow, and a more flexible cost base, we expect to deliver sustainable growth in returns for our shareholders, “says Gregg.

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