new regulations continue shift towards mri

ASX ANNOUNCEMENT 31 October 2013
New regulations continue to drive shift towards MRI
? GP requesting rights for MRI expanded to include four new clinical indications
? Providers with Medicare-funded MRI licences set to benefit the most
? Opens up opportunities to gain further market share
The Directors of Capitol Health Limited (ASX: CAJ) are pleased to advise that four new General Practitioner
(GP)-requested Magnetic Resonance Imaging (MRI) items for patients aged over 16 years, will be introduced
onto the Medicare Benefits Schedule (MBS) from tomorrow, 1 November 2013.
The changes form part of the strong Federal Government drive from the $104.4 million Diagnostic Imaging
Review Reform Package to improve Australia-wide access to affordable MRI services.
GPs are responsible for approximately 70% of all Diagnostic Imaging (DI) referrals across Australia, however
many clinical indications for MRI scans require a referral from a specialist or consultant physician. By
expanding GP requesting rights for MRI scans, these services become more accessible and the process is
faster, cheaper and more efficient for patients.
Medicare statistics indicate that the four new items on the MBS cover approximately 50% of all current
(Specialist referred) MRI scans undertaken nationwide. The new changes are therefore expected to prompt an
overall increase in use of MRI services.
Further information on the four new MRI items now available by GP referral can be found on the Australian
Government Department of Health website: http://www.health.gov.au/
Managing Director, Mr John Conidi commented:
“Capitol Health welcomes these new Federal Government changes aimed to improve access to MRI services.
“Our dominant market footprint positions us ideally to capitalise on the expected surge in demand for MRI
services, and with Capitol’s seven clinics housing Medicare-funded MRI licences, we are able to offer our
patients the most affordable option available.
“The changes also validate our underlying strategy to focus on the delivery of MRI services. Moving forward,
we expect to see significant growth in our patient base and as a consequence, material returns for investors.”