General Hospitals in Australia Industry Market Research Report Now Updated by IBISWorld

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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 Commonwealth Government is assuming a growing role in the funding of public hospitals so funding and efficiencies will become more transparent. For these reasons, industry research firm IBISWorld has updated its report on the General Hospitals industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Revenue will grow as the population and price of services increase

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.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
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.

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Gavin Smith
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