Primary Health Care chief executive Peter Gregg has signalled he will pass government funding cuts for blood tests and X-rays onto patients after the policy change sparked a rout in healthcare stocks.

In Tuesday's Mid-Year Economic and Fiscal Outlook the government said it would save $650.4 million over four years by slashing bulk-billing incentive payments for certain pathology and imaging tests such as MRIs, X-rays, and urine and blood tests.