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 - 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. 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).
In the past regulatory restrictions on the number of collection centres also acted as an entry barrier... purchase to read more