Primary Health Care is ramping up its co-payments trial in a bid to protect the medical centre operator from the federal government's proposed bulk-billing funding cuts.
Managing director Peter Gregg said on Wednesday the company is "piloting co-payments in certain geographies and for certain tests".
"We started this last year in order to better understand the volume impacts of pricing movements. These trials are expanding and we will assess the impact as we progress," Mr Gregg said during the group's earnings results briefing.
No further details were provided by the company.
The Turnbull government plans to slash bulk-billing incentive payments to pathology companies that provide services such as blood test, pap smears and x-rays.
The cuts are expected to take effect from July and save the government $650 million.
News of the co-payment trials was revealed in Primary Health's first-half results statement.
Primary Health said it is on track to deliver underlying profit after tax of $110 million to $115 million for the year ending June 30, amid cost cutting and collection centre closures.
The profit reiteration was a relief to jittery investors following November's profit warning.
That implies underlying profit after tax of around $60 million to $65 million for the second half of fiscal 2016. That's an improvement from the $50.1 million in the first half ended December 31.
Mr Gregg said the second half will be stronger with projects underway to drive margin expansion and recycle capital.
"This will deliver a platform for growth in FY 2017," Mr Gregg said.
Primary Health shares rose as much as 30 per cent to $2.88 during the afternoon session. The stock closed 45 cents higher, or 21 per cent, to $2.65 in a lower Australian market.
The stock was heavily sold off in November after the company cut its annual profit forecast as margins and revenue came under pressure.
Primary Health's net profit rose 29 per cent to $68.6 million in the first half, thanks in part to gains from the stake sale in Vision Eye and a tax settlement gain.
The gains offset a restructuring charge.
That compares with a net profit of $53.4 million for the same period last year.
First-half underlying profit after tax fell 9.9 per cent to $50.1 million from $55.6 million a year ago, in line with expectations.
Revenue rose 4.6 per cent to $835 million from $798.6 million a year ago, beating Citi analyst Victor Windeyer's expectations.
In a bid to save more money, Primary Health plans to close more collection centres over the next few months after shutting around 100 centres in the first-half.
Rival Sonic Healthcare is also in the process of closing an unspecific number of collection centres and laying off staff, blaming soft demand.
PRIMARY HEALTH PROFIT RISES
* First half net profit rose 29pct to $68.6m vs $53.4m
* Revenue up 4.6pct to $835m
* Dividend fell to 5.6 cents a share from 9 cents
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