Healthy growth: Private hospitals have received a boost from higher health insurance membership

The General Hospitals industry is growing strongly. Public hospitals receive most of their funding from the federal and state governments. Private hospitals primarily generate revenue from private health benefit payments and out-of-pocket patient fees. Demand for general hospitals has surged over the past five years, due to Australia's ageing population and the rising incidence of chronic illness among adults. Private hospitals have received a further boost from increased private health insurance membership numbers. Industry revenue is expected to rise at an annualised 4.3% over the five years through 2017-18, to $68.9 billion. This includes anticipated growth of 2.6% in more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Australia’s ageing population has helped the industry maintain revenue growth
  • Many private hospitals are non-profit entities, meaning that operators tend to have low margins
  • High community expectations will likely put pressure on governments to provide adequate funding
  • Industry Report - Industry Investment Chapter

    The Hospitals industry exhibits a low level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $12.44 is spent on wages. The industry is labour intensive as hospitals require highly skilled and qualified doctors, alongside many nurses and auxiliary staff. Enterprise bargaining agreements negotiated between hospital operators and health sector trade unions over the past five years have contributed to wage increases, particularly for nurses. While most hospitals use advanced technology, the cost of such equipment is minimal compared with the total cost of wages.Public tertiary hospitals tend to have the most advanced equipment, requiring greater capital expenditure to purchase and maintain. Suc...purchase to read more.

    Additional Insights for the General Hospitals Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the General Hospitals Industry are

  • Access to highly skilled workforce
  • Proximity to key markets
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Government funding for public hospitals and Median age of the population in the General Hospitals industry impact industry performance..

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    What's in this report

    What is the General Hospitals Industry?

    General hospitals provide medical, surgical and diagnostic services and continuous inpatient nursing care. The industry also includes establishments that provide both hospital facilities and training of medical and nursing staff.

    Industry Products
  • Public hospital same-day separations
  • Private hospital same-day separations
  • Public hospital overnight separations
  • Private hospital overnight separations
  • Industry Activities
  • Children's hospital operation
  • Ear, nose and throat hospital operation
  • Eye hospital operation
  • General hospital operation (excluding psychiatric, dental and veterinary hospitals)
  • Infectious diseases hospital operation (including human quarantine stations)
  • Maternity hospital operation
  • Obstetric hospital operation
  • Women's hospital operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government funding for public hospitals
  • Median age of the population
  • Private health insurance membership
  • Number of births
  • Total visits to a general practitioner

  • Current Performance
  • Industry structure
  • Public hospitals
  • Private hospitals
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Public hospitals
  • Private hospitals
  • Table: General Hospitals Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - General Hospitals Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health Insurance
  • General Insurance
  • Central Government Administration

  • Key Selling Industries
  • Cosmetics and Toiletry Wholesaling
  • General Practice Medical Services
  • Laundry and Dry-Cleaning Services
  • Medical and Surgical Equipment Manufacturing
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling
  • Specialist Medical Services

  • Products & Services
  • Public hospital same-day separations
  • Private hospital same-day separations
  • Public hospital overnight separations
  • Private hospital overnight separations
  • Chart: General Hospitals Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 65 and over
  • People aged 45 to 64
  • People aged 25 to 44
  • People aged 24 and under
  • Chart: Major Market Segmentation for the General Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs General Hospitals

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the General Hospitals Industry

  • Industry Globalization
    Ministry of Health, Department of Health & Human Services Victoria, Queensland Health, Department of Health of Western Australia, Ramsay Health Care Limited, South Australian Department for Health and Ageing,
  • Table: Ministry of Health - financial performance
  • Table: Department of Health & Human Services Victoria - financial performance
  • Table: Queensland Health - financial performance
  • Table: Department of Health of Western Australia - financial performance
  • Table: Ramsay Health Care Limited - financial performance
  • Table: South Australian Department for Health and Ageing - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the General Hospitals Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the General Hospitals Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Activity-Based Funding
  • A system by which governments can calculate their contribution to public hospital funding, as hospital services are classified and given an efficient price.
  • Australian Institute Of Health And Welfare (Aihw)
  • The national agency for health and welfare statistics.
  • Brownfield
  • Land previously used for commercial or industrial purposes.
  • Coag
  • Council of Australian Governments. COAG is the peak intergovernmental body in Australia, representing ministers from both federal and state and territory governments.
  • Inpatient
  • A patient that is admitted to a hospital and stays overnight or for several weeks or months.
  • Outpatient
  • An outpatient visits a hospital, clinic or associated facility for diagnosis or treatment, but is not hospitalised overnight. An outpatient is also known as a ‘non-admitted’ patient.
  • Patient Separation
  • The administrative process by which a hospital records the cessation of treatment, care or accommodation of a patient. A patient is no longer hospitalised upon separation.
  • Throughput
  • This measures the numbers of admitted patient separations and non-admitted patients to assess the speed and productivity of hospital services.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s General Hospitals market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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    • Quickly build competitive intelligence
    This report on General Hospitals:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The General Hospitals market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on General Hospitals, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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