One of Australia's largest pathology companies fears it may have to hike patient fees and slash services in the bush if the federal government cuts funding to the sector.
Sonic Healthcare, which also has a large radiology business and is the country's biggest medical centres operator, says the proposed cuts will hurt its earnings and revenues.
It warned it may be forced to introduce new or higher patient co-payments to a wider base of patients if the cuts go ahead.
It could also reduce service levels, particularly in rural areas.
"These proposed changes were announced without forewarning or consultation with the medical profession or relevant industry bodies," Sonic said in a statement on Thursday.
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Under the planned cuts, announced as part of the government's mid-year budget update on Tuesday, changes to bulk-billing from July 1 are expected to save the government $650 million over four years.
Bulk-billing incentives will be removed for pathology services and reduced for magnetic resonance imaging services under the planned changes.
Incentives for diagnostic imaging will also be aligned with GP services.
Sonic estimates the funding cuts will slice $50 million off its annual revenues and drag underlying earnings down by between five and six per cent.
Pathology Australia has warned that some patients may choose not to have essential pathology tests because of the extra cost that will be imposed on them.
Sonic, which owns Douglass Hanly Moir Pathology in NSW and Melbourne Pathology, appears to be holding some hope that the planned cuts will be blocked by the Senate.
"Sonic Healthcare will work with opposition parties, consumer groups and patients to oppose these measures, as we believe they are unreasonable for the profession and patients and will jeopardise service levels and good patient care," the company said.
