Healthy diagnosis: An ageing population has aided industry demand and 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 as a share of the population over the past five years has led to lower industry profitability over the period. Industry revenue is expected to increase at an annualised 2.8% over the five years through 2018-19, to $20.1 billion. This includes anticipated industry revenue growth of 2.4% in the current year...read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 14-19
2.8%
Forecast Growth 19-24
Profit
Employment
74,818
Businesses
118

Industry Threats & Opportunities

  • An increase in the number of New Zealanders aged over 50 has contributed to industry revenue growth
  • Industry enterprise numbers have grown slowly over the past five years
  • Growth in telehealth is anticipated to influence demand for hospital services over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is in the growth phase of its life cycle. Industry value added, which measures the industry’s contribution to the overall economy, is expected to increase at an annualised 3.2% over the 10 years through 2023-24. This result is a slight outperformance compared with real GDP growth, which is forecast to increase at an annualised 3.0% over the period.Industry establishment numbers have increased over the past five years, as New Zealand’s ageing population has fuelled demand for industry services. The population’s age distribution is a key measure of demand for hospitals. Growth in the number of people aged 50 and over is expected to increase demand for hospital services. Adv...purchase to read more.

    Additional Insights for the Hospitals Industry

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

  • Access to highly skilled workforce
  • Understanding government policies and their implications
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as Population aged 50 and older 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 in the industry. 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
  • Population aged 50 and older
  • 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 25 to 39
  • Patients aged 14 and under
  • 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 (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
    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 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 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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