Industry Analysis & Industry Trends
The Pathology Services industry provides vital information that helps doctors to diagnose and manage a number of diseases. Australia's ageing population and an increase in the prevalence of chronic illness are factors promoting demand for health services and referrals for pathology services. The industry derives the vast majority of its revenue from providing pathology services under Medicare. According to industry body Pathology Australia's 2015 Federal Budget submission, pathology represents 35% of all services provided under Medicare, although just 13.0% of the benefits paid. The average Medicare rebate is estimated to equal just $20.00 per service.
The industry is expected to grow by 2.3% in 2014-15, to reach $2.8 billion. Medicare is expected to record roughly 115.0... purchase to read more
Industry Report - Industry Key Buyers Chapter
The top four players currently account for 86.7% of industry revenue, indicating a particularly high concentration of ownership, although the degree of concentration varies by geographic region. The industry is expected to become more concentrated until the Australian Consumer and Competition Commission (ACCC) prevents major incumbents from any further acquisitions. Both of the two largest players have undertaken a number of acquisitions over the past five years including Sonic’s 2012 purchase of Healthscope’s Western Australian pathology business.
Australia’s largest publicly listed pathology businesses: Sonic Healthcare Ltd and Primary Health Care Ltd, together account for just over three quarters of annual industry revenue... purchase to read more