Ann: Select Equities Investor Conference Presentation-LHC.AX, page-3

This article in the Australian could be negative for LHC.

http://www.theaustralian.com.au/budget-2016/budget-2016-healthcare-insurers-demand-pricing-reform/news-story/584a4aecca144c6516905701221ab6f4

It is claiming the health funds are pressuring the Government to implement prosthesis pricing reform.

The federal government announced in Tuesday night’s budget that the Prostheses List Advisory Committee would be refocused to deliver better value for consumers. The budget also included the establishment of a Private Health Sector Reform Committee to take action on the recommendations of the private health insurance review.
The Australian understands that the committee is an “implementation committee” not a review committee.
Health Minister Sussan Ley said the government was committed to “meaningful” prostheses reform for consumers and including the new prostheses list advisory committee in the budget ensured the government could get on with reform in 2016-17.
“I’m sure insurers would agree ongoing, sustainable prostheses reform will be far more beneficial to consumers and themselves than just a one-off flash in the pan,” Ms Ley said.
Health insurance giant Medibank said it expected the new advisory committee would advise the government that pricing benchmarks should be introduced so that private patients pay a fair amount for prostheses.
The article is implying the Government is restricting the increase of premiums for health funds and health funds are pressuring the Government to lower the price and restrict the choice of prosthesis.

I have no idea of the implications for LHC, but it appears to be negative. Notwithstanding, I suspect the current share price is already pricing this risk.