Monash IVF Group (ASX:MVF) has been notified that five Victorian based fertility specialists who currently refer patients for IVF treatment will stop using services from Monash IVF from September 2019.
The doctors are planning to establish their own independent IVF clinic with operational control.
Collectively the Group of Doctors directly referred approximately 400 Stimulated Cycles for the year ended 30 June 2019 generating revenues of approximately $5.9 million.
Management estimates the net profit after tax, on a variable contribution basis, for the year ending 30 June 2020 may be impacted by approximately $1.5 million to $2.5 million if all doctors cease referring to the Company by the end of 1Q20.
Monash IVF has on-going strategies for growth and to mitigate the impact on revenue and earnings of the Company as a result of the departure of the Doctors.
Shares in Monash IVF Group (ASX:MVF) are trading 23.32 per cent lower at $1.08.