Under the weather: Medicare rebate freezes have constrained revenue growth

The General Practice Medical Services industry has grown modestly over the past five years. General practitioners (GPs) are the first point of contact in the medical system, providing direct treatment to patients, diagnosing health problems and referring patients to specialists or general hospitals. GPs receive Federal Government assistance through Medicare, which covers a schedule fee for each consultation. The proportion of bulk-billed consultations, in which a GP only charges the schedule fee, has climbed from approximately 81.1% in 2012-13 to an expected 85.0% in 2017-18. This trend is largely due to an increasing number of retirees, as they visit GPs more frequently and are more commonly offered bulk-billing payment options than working-age adults...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The Federal Government's freeze on Medicare rebates has constrained revenue growth
  • Medicare funding has increased due to the rising prevalence of bulk-billing
  • General practices will likely increase throughput rates and attain greater economies of scale
  • Industry Report - Industry Key Buyers Chapter

    The General Practice Medical Services industry is characterised by a low market share concentration and a high degree of fragmentation. The industry's four largest players account for less than 10.0% of industry revenue. The industry is made up of many small-scale businesses that are closely tied to community needs. According to the Australian Bureau of Statistics, approximately half of general practices operate as sole proprietorships and less than 2.0% of general practices employ 20 or more staff.While the industry is consolidating as the market share of larger players grows, Medicare continues to allow smaller practices to remain viable despite lower economies of scale. While larger players often bulk-bill, they tend to achieve profitability via high throughput rates. Sol...purchase to read more.

    Additional Insights for the General Practice Medical Services Industry

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

  • Provision of appropriate facilities
  • Having contacts within key markets
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Total visits to a general practitioner in the General Practice Medical Services industry impact industry performance..

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    What's in this report

    What is the General Practice Medical Services Industry?

    Industry firms and practitioners primarily provide general practice medical services.

    Industry Products
  • General and unspecified treatments
  • Respiratory and circulatory treatments
  • Musculoskeletal treatments
  • Skin treatments
  • Psychological treatments
  • Endocrine, metabolic and digestive treatments
  • Other treatments
  • Industry Activities
  • General medical practice operation
  • Medical service provision
  • Flying doctor service provision
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare
  • Total visits to a general practitioner
  • Median age of the population
  • Number of births

  • Current Performance
  • Participation and profit
  • Ageing population
  • Medicare funding
  • Structural changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Population demographics
  • Medicare rebate freeze
  • Participation and profit
  • Government intervention
  • Table: General Practice Medical Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - General Practice Medical Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health Insurance
  • General Insurance
  • Central Government Administration
  • General Hospitals
  • Community Health Centres
  • Aged Care Residential Services

  • Key Selling Industries
  • Medical and Surgical Equipment Manufacturing
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling

  • Products & Services
  • Respiratory and circulatory treatments
  • Other treatments
  • Endocrine, metabolic and digestive treatments
  • General and unspecified treatments
  • Musculoskeletal treatments
  • Skin treatments
  • Psychological treatments
  • Chart: General Practice Medical Services 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 Practice Medical Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs General Practice Medical Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the General Practice Medical Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the General Practice Medical Services 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 Practice Medical Services 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
  • When a practice does not receive payment from the patient, but is instead reimbursed 85% of the schedule fee from the government via the patient's Medicare account.
  • Out-Of-Pocket Expense
  • The patient's payment to make up the gap between the Medicare schedule fee and the price charged for a GP consultation.
  • Primary Care
  • The medical care received on first contact with the medical system (before being referred elsewhere).
  • Schedule Fee
  • A fee set by Medicare for a particular medical service.
  • Throughput
  • The rate an operation can produce a product or service in a specific time period.
  • What Our Customers Say

    Why buy this report?

    The General Practice Medical Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on General Practice Medical Services:
    • 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 Practice Medical Services 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 Practice Medical Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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