Toronto, ON April 17, 2003 Healthcare and diagnostic services provider CML says that recent funding increases by the Ontario Ministry of Health will positively impact revenues and profitability at its healthcare and diagnostics division.
The Ontario Association of Medical Laboratories (OAML) has entered into a two-year agreement with the Ontario Ministry of Health to increase the provincial payment cap for laboratory services from an adjusted cap of approximately C$506 million to $526.0 million for the year ending March 31, 2004 and $553.0 million for the year ending March 31, 2005.
Under the terms of the agreement, which is retroactive to April 1, 2003, the Ministry of Health has also agreed to pay a one-time adjustment of $10.0 million pending the satisfaction of certain conditions by the OAML. CML, which currently holds approximately 30% of the Ontario laboratory testing market, will receive its proportional share of the provincial payment cap increase.
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