Specialist Medical Services in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) February 10, 2015 -- The Specialist Medical Services industry has grown strongly over the past five years due to strong government assistance and Australia's aging population. The Federal Government provides support to all qualified 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. According to IBISWorld industry analyst David Whytcross, “Limited out-of-pocket costs due to Medicare support have meant that the ageing population has driven demand growth without patients being greatly hindered by price.”
Industry revenue is forecast to grow by a compound annual 6.0% over the five years through 2014-15 to reach $16.9 billion, including growth of 4.5% over the current year. Industry demand has increased as Australia's population has grown and aged. The growing population has contributed to natural increases in industry demand.
“The aging 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,” says Whytcross. 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 that patients are willing to pay more out of pocket for, such as robotic surgery, have also bolstered industry revenue. Similar trends are expected to affect the 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 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. Further changes proposed in the 2014-15 Federal Budget to simplify the Medicare Safety Net will further decrease government assistance if enacted.
The Specialist Medical Services industry exhibits a low level of market share concentration. Specialist medical practitioners are generally employed in small, privately owned practices. In 2012-13, non-employing businesses made up 50.2% of all businesses within the industry, while only 0.9% employed 20 or more people. These figures represent the high degree of fragmentation within the industry in 2014-15. This can largely be attributed to its wide range of services. Companies usually service a particular specialisation, none of which account for a great proportion of industry revenue.
For more information, visit IBISWorld’s Specialist Medical Services industry in Australia report page.
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.
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IBISWorld industry Report Key Topics
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.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
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