budget 2014, page-15

I wasn't sufficiently clear in my previous post.

Hopefully the following points assist:

- Absent the Bulk Billing Incentive arrangement that was introduced in 2009, all medicare payments made to diagnostic imaging providers would be at 85% of the MBS. The Bulk Billing Incentive sees this payment rate increased to 95% of the MBS for procedures that are bulk billed.

- My understanding is that CAJ bulk bills approx 100% of its procedures.

- The Bulk Billing Incentive arrangement is being ABOLISHED, assuming it passes the senate, from 1 July 2015. Therefore, maximum Medicare payment to DI providers falls to 85% (and this is then reduced by a further $5)

- The only carve out is preferred treatment for concession card holders. I've not looked into how this works.

The important fact is that the difference between 95% MBS funding today and 85% funding in the future is a real loss to CAJ that flows straight to the EBITDA line.