Down with the sickness: The ageing population has boosted demand for industry services

The Health Services subdivision includes a range of health services and facilities. General hospitals are the subdivision's largest revenue driver, accounting over half of Australia's health services revenue. General practitioners, clinical specialists and dentists also represent significant revenue streams for the subdivision. Australia's growing and ageing population, combined with expanding private health insurance coverage, is expected to generate strong demand for health services over the five years through 2018-19. Rising demand has primarily driven revenue growth, as inflation has outpaced increases in Medicare benefits per service and schedule fees in some industries. Health services revenue is expected to grow at an annualised 3.6% over the five years through 2018-19 to $ more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Australia’s growing and ageing population has strengthened demand for health services
  • Increased patient volumes for GPs and specialist medical practitioners have driven growth
  • Revenue growth is forecast to outpace employment growth due to improving efficiency and technology
  • Industry Report - Starting a New Business Chapter

    Barriers to entry are high within the Health Services subdivision. Barriers to entry vary across health services, but common themes across all participating industries are imposing start-up costs and heavy regulation, with significant educational qualifications required to provide relevant services. The largest segment, general hospitals, has very high barriers to entry as public hospitals are owned by State Governments. Opening a new public hospital should be considered an expansion of a state health department’s operations rather than an entry into the subdivision. Ent...purchase to read more.

    Additional Insights for the Health Services Industry

    IBISWorld has determined the most important Key Success Factors for the Health Services are:

  • Ability to take advantage of government subsidies and other grants
  • Economies of scope
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Government funding for public hospitals in the Health Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Health Services Industry?

    The Health Services subdivision includes entities that primarily provide direct treatment to patients or perform auxiliary services in support of treatment. Health services entities that provide direct treatment to patients include general hospitals, general practices and physiotherapy clinics, while auxiliary service providers include pathology and diagnostic imaging operators.

    Industry Products
  • Public hospitals
  • Private hospitals
  • General practice medical services
  • Specialist medical services
  • Dental services
  • Diagnostic testing
  • Other health services
  • Industry Activities
  • Operating general hospitals
  • Operating general practices
  • Providing specialist medical services
  • Providing pathology and diagnostic imaging services
  • Providing dentistry, orthodontics and optometry services
  • Providing chiropractic, physiotherapy and alternative health services
  • Providing ambulance services
  • Providing other allied healthcare services
  • 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
  • Government funding for public hospitals
  • Population aged 50 and older
  • Private health insurance membership
  • Real household disposable income

  • Current Performance
  • Subdivision growth
  • Ageing population
  • Private health insurance
  • Government funding
  • Chart: Revenue Growth

  • Industry Outlook
  • Ageing population
  • Government funding changes
  • Table: Health Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Health Services Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Commercial Cleaning Services
  • General Practice Medical Services
  • Medical and Surgical Equipment Manufacturing
  • Other Health Services
  • Pathology Services
  • Pharmaceutical Product Manufacturing
  • Specialist Medical Services

  • Products & Services
  • Public hospitals
  • Other health services
  • Private hospitals
  • General practice medical services
  • Specialist medical services
  • Dental services
  • Diagnostic testing
  • Chart: Health 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 Health 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 Health Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Health Services Industry

  • Industry Globalization
    Ministry of Health, Department of Health & Human Services Victoria, Queensland Health, Department of Health of Western Australia,
  • 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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Health 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 Health Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Patient Separation
  • Administrative process by which a hospital records the cessation of treatment, care and/or accommodation of a patient.
  • Primary Health Care
  • Health services that play a central role in the local community, usually at the level of general practice.
  • Throughput
  • Measures the number 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 Health Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Health 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 Health 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 Health Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.