Growing private health insurance coverage has stimulated industry growth over the past five years.
Melbourne, Australia (PRWEB) April 23, 2015
The ageing and growth of Australia's population has benefited operators in the Dental Services industry in Australia over the past five years, particularly older people who practised sound oral care in their younger years and still retain their natural teeth. While many consumers have paid for dental check-ups and procedures with their own income, others have used private health insurance extras cover to subsidise the cost. According to IBISWorld industry analyst David Whytcross, “Growing private health insurance coverage has therefore stimulated industry growth as patients are willing to visit their dentist more regularly and undergo more expensive procedures.” Consequently, industry revenue is forecast to rise by a compound annual rate of 2.1% over the five years through 2014-15, to reach $9.4 billion.
There has been a significant number of Federal Government policy changes over the past five years, which have had varied effects on the industry. The Medicare Chronic Disease Dental Scheme (CDDS) and the Medicare Teen Dental Plan (MTDP) enabled many consumers to maintain their oral health even if they were not in a position to pay for regular dental check-ups. “This included visits to public clinics and the provision of vouchers to attend private clinics,” says Whytcross. These programs have since ceased, which has caused a degree of revenue volatility, and have been replaced by provisions under the national Dental Health Reform Package (DHRP). The DHRP is a similar package of policies but is more appropriately targeted at patients without the means to pay for dental care. The DHRP is projected to drive industry revenue growth of 3.1% in 2014-15. The industry exhibits a low level of market share concentration.
Similar Dental Services industry trends are expected over the next five years. Industry operators are expected to be supported by continued demand from older Australians requiring work on their natural teeth, particularly as these consumers and other segments of the population increase their uptake of private health insurance extras cover to reduce out-of-pocket dental costs. The introduction of DHRP initiatives is expected to stabilise government policy for dental services, promoting more consistency and less volatility in revenue growth.
For more information, visit IBISWorld’s Dental Services industry in Australia report page.
The industry comprises registered general or specialist dental practitioners. It also includes dental clinics, in which a group of dentists is associated for purposes of providing dental services. Dental hospitals providing outpatient services only are also included in the industry.
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.