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 Key Buyers Chapter
The industry is characterised by a low level of concentration and a high degree of fragmentation. The industry's four largest players account for less than 10% of industry revenue. The industry comprises many small-scale businesses that are closely tied to local community needs. According to the Australian Bureau of Statistics, almost half of general practices operated as sole proprietorships and only 1.9% of general practices had 20 or more employees in June 2012 (Counts of Australian Businesses, including Entries and Exits, Cat No. 8165.0).
While the industry is consolidating as many practices are growing, the aid of Medicare continues to allow smaller practices to remain viable despite smaller economies of scale... purchase to read more