Industry Analysis & Industry Trends
The Pathology Services industry provides vital information that helps doctors to diagnose and manage a number of diseases. Population ageing and an increase in the prevalence of chronic illness are factors promoting demand for health services and referrals for pathology services.
The industry is projected to generate revenue from providing pathology services under Medicare amounting to $2.65 billion in 2012-13, representing growth by 1.9% on the previous year. Medicare is expected to record 119.4 million pathology services in 2012-13, up 4.1% on 114.7 million services in 2011-12. Medicare rebates are forecast to equate to an average of $19.71 per service. However, reported services include patient episode initiation items, which are additional to actual tests performed... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are high and appear to have increased. This has been due to heavy regulation, the high cost of building large laboratories, and the presence of economies of scale and scope.
The cost of establishing a new business includes high-cost equipment, recruiting and training staff, and establishing collection centres and a referral base. Sonic Healthcare Ltd invested $70 million on its 'super' laboratory in Sydney (completed in late 2007) and such investments are beyond the scope of most smaller players. In addition, the cost of complying with the various government regulations and minimum standards in relation to owners, pathologists, laboratories and collection centres can be high (particularly for new entrants)... purchase to read more