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. In contrast, 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 expanding private health insurance coverage across the population. 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 - Industry Investment Chapter
The industry has a low level of capital intensity. In 2014-15, general hospitals are estimated to invest $0.06 in capital for every dollar spent on wages. The substantial wage costs relative to capital investment result from hospitals employing highly skilled and qualified doctors and a large number of nurses and auxiliary staff. While advanced technology is used in many hospitals, the cost of such equipment is minimal compared with the cost of wages.
Public tertiary hospitals tend to have the most advanced equipment, with greater levels of capital expenditure required. Such hospitals also have the highest wage costs as they have no profit motive, resulting in capital intensity remaining relatively similar to private acute overnight hospitals... purchase to read more