Growing private health insurance coverage has ensured that there is a large pool of clients, contributing to industry growth
Melbourne, Australia (PRWEB) March 11, 2015
The Physiotherapy Services industry in Australia is a picture of health, benefiting primarily from Australia's ageing population and rising private health insurance membership coverage over the past five years. The industry has rebounded strongly following a slight slowdown in the aftermath of the global financial crisis, further boosted by growth in disposable income. According to IBISWorld industry analyst David Whytcross, “baby boomers are increasingly reaching retirement age and are becoming more susceptible to injuries requiring a physiotherapist's attention.” Private health insurance coverage growth has ensured that a wider pool of potential clients have greater access to the industry. Industry revenue is forecast to rise at a compound annual rate of 2.9% over the five years through 2014-15, to reach $1.5 billion. Stable revenue growth of 1.7% is forecast for the current year.
Older generations are more likely to require physiotherapy services to prevent or rehabilitate injuries and maintain their musculoskeletal structures as they age. Population ageing has meant that people with these health traits make up a greater share of the population. Older generations also demonstrate traits that are common with higher physiotherapy participation, including greater acquired wealth, increased health consciousness and a larger percentage of individuals with private health insurance cover. While physiotherapy services receive minimal government subsidisation, private health insurers largely cover the service. “Growing private health insurance coverage has ensured that there is a large pool of clients that can receive such services at little out-of-pocket cost, contributing to industry growth”, says Whytcross. Private health insurance numbers are expected to continue growing over the next five years despite changes to Federal Government rebates on private health insurance premiums, as individuals and families in higher income brackets receive lesser rebates. Coverage growth will benefit the industry. Australia's population will continue to age, further assisting industry revenue growth. Physiotherapists are expected to increasingly move into specialisations, including geriatric services and sports therapy. Specialising in certain fields will allow practitioners to differentiate themselves from the rest of the price-competitive industry, enabling them to charge higher prices and contribute to revenue growth.
The Physiotherapy Services industry is characterised by a low level of concentration and a high degree of fragmentation. Firms within the industry tend to be small, with almost half of physiotherapy practices operating as sole proprietorships. The high number of small businesses and low number of bigger businesses, coupled with the industry's strong profit margins, demonstrate that physiotherapy services businesses have little need to increase economies of scale through consolidation. While physiotherapists often expand their operations across two or even three practices, there are few occurrences of practitioners forming a group or company.
For more information, visit IBISWorld’s Physiotherapy Services industry in Australia report page.
This industry is made up of companies and practitioners that primarily provide physiotherapy services.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
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.