Industry Analysis & Industry Trends
General practitioners (GPs) are the first point of contact in the medical system. The Federal Government provides assistance to the industry via Medicare by covering the schedule fee of each GP consultation. GPs can charge the schedule fee (bulk-billing) or a higher price, which requires a patient to pay the gap between the schedule fee and the set price. Bulk-billing rates have climbed to about 82% over the past five years, further diminishing the out-of-pocket cost to the patient. Therefore, with out-of-pocket patient costs considerably lowered by Medicare, growth in industry revenue depends on growth in the volume of services provided.
Demand for GP services has steadily grown over the past five years as Australia's population increases and ages... purchase to read more
Industry Report - Industry Locations Chapter
Demand for services and the average size of entities affect the number of general practices in a state or territory. The location of GP practitioners registered for Medicare is closely correlated with the spread of the population. A significant proportion of general practices are located in urban areas with high population densities. Consequently, New South Wales, Victoria and Queensland account for about 79.4% of the number of general practices in Australia.
As Medicare can cover the entire cost of GP services through bulk-billing, household incomes in a region are not a major determinant of demand. However, a GP's operating income per service is affected by the incidence of bulk-billing... purchase to read more