Eight large-scale medical centres proposed by Primary Health Care
Reporting its annual results on Wednesday, Primary said earnings from its network of bulk-billing medical centres surged 8.3% in the January-June second half of the year from the like period of 2013.
The strong result lifted the medical centre division’s full-year earnings figure to $175.8 million, a 4.4% increase, despite a freeze on Medicare fees during the 2014 financial year.
Importantly, improved profit margins at medical centres helped net profits after tax climb by 8.3% to $162.5 million across all divisions.
Primary’s “GP acquisition price” fell 10% in the year, and non-GP services at its medical centres contributed a growing share of income, the company said.
“A significant portion of Primary’s revenue within our mature, large-scale medical centres is now derived from non-GP services and our strategy is to continue to build our capabilities,” managing director Dr Edmund Bateman