Sonic Healthcare (ASX:SHL) and some other leading healthcare providers are expected to face challenging conditions in the medium term.
Analysts say until uncertainty surrounding Federal Government funding to the pathology sector is resolved, their earnings will be under a cloud.
The government this week gave the industry one month to propose further savings for the sector, or have savings measures forced upon them by Canberra.
Analysts say the industry will likely put forward proposals for volume-based discounting for certain tests.
Sonic Healthcare reported half year earnings of just under 135 million dollars.
