Revenue will grow as the population and price of services increase
Melbourne, Australia (PRWEB) August 26, 2012
Hospitals occupy an important place in Australia's healthcare system, providing care for people with acute illness. Technological change, rising household incomes and an ageing Australian population will each promote demand for hospital services. The General Hospitals industry in Australia is expected to generate revenue of about $53.8 billion in 2012-13 (representing growth of 4.2% from the previous year). This will account for about one-third of the revenue generated by all healthcare industries in Australia. Revenue for the industry is expected to increase at an annualised 4.2% in the five years through 2012-13. According to IBISWorld industry analyst Nigel Fitzpatrick “this growth will come from increases in both the number and the average price of services”.
Revenue for the General Hospitals industry in Australia is forecast to grow in the five years through 2017-18. Revenue growth over the next five years will be promoted by more admissions as a consequence of a growing Australian population, a general ageing of Australia's population and an increase in hospital capabilities (such as advances in surgical techniques, medical devices, pharmacology and biotechnology). “The Commonwealth Government is assuming a growing role in the funding of public hospitals so funding and efficiencies will become more transparent,” Fitzpatrick adds. Healthcare reforms are aimed at addressing a range of long-term challenges in the Health and Community Services division. These include access to services, ageing of the population, the growing burden of chronic disease, treatment outside hospitals and costs and inefficiencies generated by blame-shifting and cost-shifting in the publicly funded health system. Private health insurers are expected to be under some pressure to minimise growth in premiums and hospital benefit payments, which could put pressure on private hospitals.
The industry is considered to exhibit low market share concentration. The top three players in the industry are Metropolitan Health Service, Ramsay Health Care and Healthscope. Hospital markets are relatively local in nature, so that market share concentration is more relevantly measured in localised market areas. In recent years, state governments contracted out the operation of some public hospitals to private for-profit operators (although some of these contracts have been terminated). Some state governments contract with private hospitals to undertake elective surgery in order to reduce public hospital waiting lists. This has contributed to an increase in the private sector's share of industry activity.
For more information, visit IBISWorld’s General Hospitals report in Australia industry page.
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IBISWorld industry Report Key Topics
General hospitals provide diagnostic, medical and surgical services and continuous inpatient nursing care. Also included are establishments that provide both hospital facilities and training of medical and nursing staff.
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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