Bill of health: Stable government funding to public hospitals has maintained revenue growth

The Hospitals industry has exhibited stable growth over the past five years. An increase in the number of New Zealanders aged over 50 has contributed to industry revenue growth over the period. Public hospitals operate as not-for-profit organisations, with surplus funds reinvested back into the hospital. Conversely, private hospitals generate profit through the premiums paid by members. A drop in private health insurance membership over the past five years has led to lower industry profitability over the period. Industry revenue is expected to increase at an annualised 3.4% over the five years through 2017-18, to reach $19.3 billion. This includes anticipated growth of 3.3% in the current year.Hospitals are part of the Health Care and Social Assistance division...read more.

Industry Statistics & Market Size
Revenue
$19bn
Annual Growth 13-18
3.4%
Forecast Growth 18-23
Profit
Employment
85,591
Businesses
115

Industry Threats & Opportunities

  • A decline in private health insurance membership has led to lower industry profitability
  • Industry enterprise numbers have grown slowly over the past five years
  • Growth in telehealth is expected to influence demand for hospital services over the next five years
  • Industry Report - Industry Investment Chapter

    The industry is subject to low capital intensity. For every dollar spent on capital costs, an estimated $8.93 is spent on wages. Hospitals are labour intensive, employing many highly skilled staff including doctors, surgeons, nurses and midwives. Staff that undertake a range of administrative and support roles also support hospital operations. Modest growth in hospital numbers has driven demand for industry employment over the past five years.Despite low capital intensity, investment in new technology is crucial. To remain viable, hospitals must implement the latest medical, surgical and diagnostic equipment. Consequently, new hospitals require significant capital investment. However, ongoing capital costs are low due to the long depreciation life of these items...purchase to read more.

    Additional Insights for the Hospitals Industry

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

  • Access to highly skilled workforce
  • Understanding government policies and their implications
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as Median age of the population and Private health insurance membership in the Hospitals industry impact industry performance..

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    What's in this report

    What is the Hospitals in New Zealand Industry?

    Hospitals provide surgical, medical and diagnostic services and continuous medical care for inpatients. Operators that provide both hospital facilities and training of medical and nursing staff are also included. Psychiatric hospitals are excluded from the industry.

    Industry Products
  • Public hospital same-day separations
  • Public hospital overnight separations
  • Private hospital same-day separations
  • Private hospital overnight separations
  • Industry Activities
  • Children's hospital operation
  • Day hospital operation
  • Ear, nose and throat hospital operation
  • General hospital operation (excluding psychiatric or veterinary hospitals)
  • Infectious diseases hospital operations
  • Maternity hospital operations
  • Obstetric hospital operations
  • Women’s hospital operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • 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
  • Enterprises and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing demand
  • Technology and profit
  • Table: Hospitals Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • General Practice Medical Services in New Zealand
  • Human Pharmaceutical and Medicinal Product Manufacturing in New Zealand
  • Medical, Surgical and Scientific Equipment Manufacturing in New Zealand
  • Specialist Medical Services in New Zealand

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

  • Demand Determinants
    Major Markets
  • Patients aged 60 and over
  • Patients aged 40 to 59
  • Patients aged 14 and under
  • Patients aged 25 to 39
  • Patients aged 15 to 24
  • Chart: Major Market Segmentation for the Hospitals 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 Hospitals

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

  • Industry Globalization
    Auckland District Health Board, Canterbury District Health Board, Counties Manukau District Health Board, Waitemata District Health Board,
  • Table: Auckland District Health Board - financial performance
  • Table: Canterbury District Health Board - financial performance
  • Table: Counties Manukau District Health Board - financial performance
  • Table: Waitemata District Health Board - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the 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 Hospitals Industry
    Includes:
  • 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
    Inpatient
  • A patient that is admitted to a hospital and stays overnight, or for several weeks or months.
  • Outpatient
  • An outpatient that 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 through which a hospital records the cessation of treatment, care or accommodation of a patient. A patient is no longer hospitalised on separation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hospitals in New Zealand 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 Hospitals in New Zealand:
    • 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 Hospitals in New Zealand 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 Hospitals in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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