The ACCC has started court proceedings against the company, alleging it contravened the consumer law.
The company removed certain eye procedures as of August 2015 from the MediGap scheme, a scheme in which doctors and other in-hospital medical providers opt to receive a higher level of reimbursement subject to there being no "out-of-pocket" expense.
The ACCC alleges the company failed to notify members in advance of the removal of this service. The company rejects the position being taken by the ACCC.
Macquarie does not expect the outcome to have a material impact on growth or profitability. Rating is upgraded to Outperform from Neutral following the recent sell down of the stock. Target is raised to $5.60 from $5.50.
Target price is $5.60.Current Price is $5.14. Difference: $0.46 – (brackets indicate current price is over target). If NHF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).