Pathology Services in Australia Industry Market Research Report Now Updated by IBISWorld

The impending wind-up of the Pathology Funding Agreement is set to change the industry’s operating environment. For this reason, industry research firm IBISWorld has updated its report on the Pathology Services industry in Australia.

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IBISWorld Market Research

IBISWorld Market Research

Australia’s ageing population is helping drive demand for industry services.

Melbourne, Australia (PRWEB) January 16, 2014

The Pathology Services industry provides vital information that helps doctors to diagnose and manage a number of diseases. IBISWorld industry analyst Arna Richardson states, “The ageing population and an increase in the prevalence of chronic illness are factors promoting demand for health services and referrals for pathology services.” The industry is expected to generate revenue from providing pathology services under Medicare amounting to $2.7 billion in 2013-14, representing growth of 3.1% on the previous year. Medicare is expected to record in excess of 126 million pathology services in 2013-14, up from 100 million services in 2008-09, suggesting strong volume growth over the past five years. Medicare rebates on average are forecast to equate to just under $20 per service. However, reported services include patient episode initiation items, which are additional to actual tests performed. Therefore, actual revenue per test item is higher than this figure.

Over the five years through 2013-14, industry revenue is projected to display modest cyclical growth by an annualised 2.9%, reflecting the impact of an increase in the number of pathology services but partly offset by a decline in average revenue per service. Strong growth in the number of services is mainly due to growth in the use of medical services, and an increase in the average number of pathology tests per medical service. According to Richardson, “one of the key variables currently shaping the performance of the industry is the five-year Pathology Funding Agreement signed by the Commonwealth Government and key stakeholders in May 2011.” This commenced in 2011-12, providing for just under 5.0% yearly nominal growth in industry-wide pathology funding outlays over a five-year term.

The Pathology Services industry is highly concentrated, with the four largest players contributing a substantial proportion of industry revenue in 2013-14. The four largest industry operators are Sonic Healthcare, Primary Health Care, Healthscope and St John of God Health Care. The industry is expected to become more concentrated until the ACCC prevents major incumbents from any further acquisitions. Both of the two largest players have undertaken a number of acquisitions in the five years through 2013-14 including Sonic's 2012 purchase of Healthscope's Western Australian pathology business. For more information, visit IBISWorld’s Pathology Services report in Australia industry page.

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IBISWorld industry Report Key Topics

Companies in this industry operate pathology laboratories and collection centres.

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.


Contact

  • Gavin Smith
    IBISWorld
    +61 396553838
    Email