Industry Analysis & Industry Trends
The Pathology Services industry provides vital information that helps doctors to diagnose and manage a number of diseases. The 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 is expected to generate revenue from providing pathology services under Medicare amounting to $2.7 billion in 2013-14, representing growth of 3.1% on the previous year. Medicare is expected to record in excess of 126 million pathology services in 2013-14, up from 100 million services in 2008-09, suggesting strong volume growth over the past five years. Medicare rebates on average are forecast to equate to just under $20 per service... purchase to read more
Industry Report - Industry Investment Chapter
Pathology companies require substantial amounts of capital investment, although a relatively high labour input results in the industry having a medium level of capital/labour intensity.
Capital costs are relatively high and increasing in the industry due to the following: the high cost of new technology-based equipment; an increase in the range of possible tests (i.e. increasing the need for specialised high-cost equipment); and investment required for communications and information technology infrastructure. Industry players point out that new laboratories offer operational savings, with savings in labour being the largest component. Depreciation charges represent about 5.5% of annual industry revenue, which is broadly consistent with the capital expenditure share... purchase to read more