Clean bill of health: An ageing population has increased demand for many health services

The Health Services subdivision includes a range of health services and facilities. General hospitals are the subdivision's largest revenue driver, accounting for approximately 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 2017-18. Rising demand has primarily driven revenue growth, with increases in Medicare benefits per service and schedule fees failing to keep up with inflation in some industries. Health services revenue is expected to grow at an annualised more.

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

Industry Threats & Opportunities

  • Australia’s growing and ageing population generates strong demand for health services
  • Increased patient volumes for GPs and specialist medical practitioners have driven growth
  • Revenue growth will outpace employment growth due to improving efficiency and technology
  • Industry Report - Industry Locations Chapter

    The distribution of health service establishments broadly corresponds to the geographic spread of the national population and population density. Australia’s two largest states, New South Wales and Victoria, are over-represented in terms of their share of the population. Of health service establishments, 34.2% are in New South Wales and 26.1% in Victoria despite these states accounting for approximately 32% and 25% of Australia’s population respectively. This is also despite there being disproportionately fewer general hospitals in the two major states, as population density lends itself to larger, more centralised hospitals rather than more numerous hospitals. How...purchase to read more.

    Additional Insights for the Health Services Industry

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

  • Access to government funding
  • 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..

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    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
  • Median age of the population
  • 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
  • Specialist medical services
  • General practice 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 (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
    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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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.

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