Older people are far more susceptible to chronic diseases or disorders.
Melbourne, Australia (PRWEB) May 03, 2014
The Specialist Medical Services industry in Australia has grown strongly over the past five years due to strong government assistance and the country's ageing population. Within the industry, there are a number of different areas specialists can work in. These areas generally focus on a specific body part, body system or population segment. The Federal Government provides support to specialists through Medicare, funding a schedule fee that covers part or all of a specialist attendance. Medicare also provides safety nets to prevent the annual accumulation of gap payments from placing too great a burden on patients. With Medicare limiting out-of-pocket costs, the ageing population has driven demand growth without hindrance. According to IBISWorld industry analyst David Whytcross, “Coupled with the indexation of schedule fees, industry revenue has grown by an estimated compound annual rate of 6.5% over the five years through 2013-14.” Revenue is forecast to reach $11.9 billion in 2013-14, up 5.5% on the previous year.
Industry demand has increased as Australia's population has both grown and aged. The growing population has contributed to natural increases in industry demand. The ageing population has stimulated further growth in industry revenue, as older people use the services of specialists at a much higher rate than younger people do. Older people are far more susceptible to chronic diseases or disorders such as cancer, heart disease, hypertension, diabetes and arthritis. Specialists manage and treat these health problems. “Technology improvements such as robotic surgery have also driven revenue growth, as patients are less apprehensive about surgery when greater precision is involved and are willing to pay more for the privilege of advanced technology use,” says Whytcross. The industry exhibits a low level of market share concentration, with no major players.
Similar trends are expected to affect the Specialist Medical Services industry over the next five years. The population will continue to age, increasing demand for specialist medical services. Further industry consolidation is expected, with more centralised locations expanding in size. Economies of scale achieved through consolidation will offset the decline in profit margins due to an increase in the Extended Medicare Safety Net (EMSN) threshold, which will rise to $2,000 on 1 January 2015. The EMSN threshold increase will transfer some of the cost burden from Medicare to patients, reducing industry demand.
For more information, visit IBISWorld’s Specialist Medical Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry comprises registered medical practitioners (including medical clinics or group practices) that provide specialist medical services (other than pathology and diagnostic imaging specialities) on their own account or for government agencies or non-profit organisations.
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
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.