Shares in medical centres and pathology provider Primary Health Care have fallen after the company downgraded its earnings forecast.
At 1133 AEST, Primary was down 55 cents, or 10.6 per cent, at $4.64.
They improved slightly to close 42 cents, or 8.09 per cent, lower at $4.77.
On Wednesday, after the share market had closed, Primary downgraded its 2014/15 full year underlying earnings forecast to $400 million, from earlier guidance of $410-425 million.
Primary blamed the reduced earnings on a range of factors, including extreme weather, particularly in NSW, and a relatively mild cold and flu season.
An analyst's report from Macquarie Wealth Management says Primary's earnings downgrade underlines the extent of the challenges inherent in its area of business, which was not reflected in its current share price.
Macquarie said the Abbott government's freeze on the Medicare Benefits Schedule - the MBS sets the fees for GP visits and procedures - means that instead of annual fees rising by around two per cent, prices will remain flat until 2018.
Macquarie said the last time that MBS fees were frozen, medical centre earnings grew by only 0.8 per cent.
"We believe this will place more pressure on Primary's already modest rates of earnings growth," the Macquarie report said.
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