Melbourne, Australia (PRWEB) June 24, 2012
Regardless of economic factors and conditions such as unemployment, consumer sentiment and average wages, Australians will always get sick. This ensures that the Health Services industry remains largely insulated from any bad weather in the Australian economy. Even though revenue declined marginally during 2008-09 as the worst effects of the global financial crisis were felt, it bounced back strongly in 2009-10, and will continue to trend up for the next five years. According to IBISWorld industry analyst Alen Allday, “Revenue for health services is estimated to total $93.7 billion in 2011-12, up 3.5% for the year”. Growth in healthcare funding and spending is constant, as government revenue for health care consistently increases in line with GDP, and often faster.
The lion's share of revenue is generated by general hospitals, which attract the bulk of federal and state government funding for health. General hospitals have been given a further boost by the Federal Government's healthcare reforms package. Over the five years through 2011-12, health services revenue is expected to grow by 2.6% per annum. Over the next five years, revenue growth is also expected to be positive. “The healthcare reforms coming into effect over the next five years will have a drastic influence on how public health care is funded, managed and coordinated”, Allday adds. A new activity-based funding regime will be imposed on Australia's hospitals, and although it has the potential to more equitably distribute public healthcare resources, its efficacy will depend on its proper implementation and management.
The top three operators in the Health Services industry are Queensland Health, Ramsay Health Care Limited and Sonic Healthcare Limited. The industry is estimated to have a low level of market share concentration. Market share concentration has declined significantly in recent years with several state-operated health departments being broken down into Local Health Networks, or Medicare Locals. This concentration level will decline further from 2012-13 when Queensland Health undergoes a similar process.
For more information, visit IBISWorld’s Health Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry supplies health services to the public either directly or via proxies. Manufacturers and wholesalers of pharmaceutical, medical, surgical and toiletry goods are key suppliers of subdivision products, which are used in treating individuals. Key markets include private and government consumers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.