The health care services include institutions that provide direct treatment to patients or provide auxiliary services in support to treatment. Institutions that provide direct treatment include general hospitals, general practices, physiotherapy, etc. Auxiliary services include pathology and diagnostic imaging. The demand for health care is always high since treatment is often a necessity for patients. Government funding covers the cost for hospital care and Medicare for patients, so price doesn’t affect demand significantly. The key factors that influence demands are the age profile of the population and the extent of private health insurance coverage.
Health care service includes a wide range of services provided by a variety of institutions. General Hospitals account for about half the industry revenue while the rest is made up of general practice medical services, specialist medical services, dental services and other health services. Overall, the revenue for the industry is forecasted to grow at a steady rate over the five years through 2013-14. The number of institutions offering health care services has increased steadily, with a significant increase in physiotherapy and dental practice services.
The geographic spread of health care institutions is reflected according to spreads in national population health and density. New South Wales and Victoria account for most of the health care institutions in the country. Western Australia and South Australia consist the second most institutions whereas Northern Territory and Tasmania account for very insignificant numbers.
Market share concentration in this industry is low, and the four largest players are the state health departments. Competition in this industry is low, and the barrier to entry is high.
- Find ATO benchmarks at (https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/About/Small-business-benchmarks/)offer a broad database of small business benchmarks, which are a guide to help business compare their performance against similar businesses in the industry.
- Institutions with a good reputation good and brand image are more likely to receive referral patients and retain them;
- Providing a variety of services helps to grab more market share as patients usually prefer a place which offers them a wide range of services;
- Active engagement with the surrounding community is a strong competitive edge as this helps to build reputation;
- Proper resource utilisation can be crucial to maximising profits and minimising costs;