Profits loss blamed on ‘inane’ cuts
PRIMARY Health Care CEO Dr Edmund Bateman has pointed the finger at Federal Government cuts to pathology rebates for contributing to the dramatic fall in the company’s half-yearly profits, which were revealed last week.
The corporate health provider’s half-yearly results to December 2010 showed net profits after tax sitting at $20 million, down 73% compared to the same period in 2009.
Dr Bateman (pictured) said the cuts – announced in the 2009–10 federal budget – were part of a broader campaign of “inane” and “not well thought through” cuts to Federal Government funding of primary health services.
“It is really part of a process that’s been going on for a long time,” Dr Bateman told MO.
He also blamed the rebate cuts for 290 staff redundancies, although Primary says none were GPs.
As well as the drop in overall half-year profit,