Industry Analysis & Industry Trends
Public and private general hospitals provide acute care to patients. Government-funded public hospitals receive the majority of their funding from state governments and the Federal Government, while private hospitals generate revenue from private health benefit payments and out-of-pocket patient costs. Demand for general hospitals has surged over the past five years, due to Australia's rapidly ageing population and the prevalence of chronic illness among adults. Private hospitals have received a further boost from the increased take-up of private health insurance. Industry revenue is forecast to increase by a compound annual 3.9% over the five years through 2014-15, to be worth $61.8 billion... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the General Hospitals industry are high. Public hospitals account for the majority of industry revenue, and are state-owned and state-funded entities. Barriers to entry into the public hospital sector are difficult to determine as the sector does not demonstrate regular industry characteristics. As each state's health department is its own entity, opening new public hospitals can be considered an expansion rather than an entry to the industry.
Private hospitals, although only accounting for 21.6% of industry revenue, also demonstrate significant barriers to entry for new players. Start-up costs are immense within the private hospital sector... purchase to read more