Healthcare stocks are rallying on pathology bulk-billing deal

Dan Kitwood/Getty Images/Cancer Research UK.

Healthcare stocks rallied today after prime minister Malcolm Turnbull announced a deal with pathology businesses to maintain bulk billing for patients.

Turnbull revealed the deal in his debate with opposition leader Bill Shorten on Friday night.

He says patients now don’t have to worry about being charged extra for blood tests.

Under the deal, the government gets to cut to bulk-billing incentives, to save $650 million over four years, but pathology businesses get protection on rent increases for collection centres.

Pathology Australia says it will now stop an advertising campaign against the federal government.

The government announced proposed changes in December last year.

Sonic healthcare was up almost 5% to $21.40 today and blood products group CSL added 2% to $113.22.

Among other health-related stocks, Sirtex was 3.8% higher at $31.68, Cochlea 3% to $115.25 and Ramsay 1.6% to $71.61

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.