A new report from IBISWorld is predicting a significant increase in the demand for additional health services, particularly from the hospital sector.
Driven by insurance
Public and private facilities are set to see an increase in their overall industry revenue. Revenues for general hospitals are expected to rise by an average 4.3 per cent annually over five years from 2015, while private outlets will see additional revenue, driven by an increase in private health cover insurance, of 2.3 per cent over the same period.
An ageing population and government policy
IBISWorld goes on to describe that a major factor in these revenue increases is due to Australia’s ageing population. According to the Australian Bureau of Statistics (ABS), the number of people in Australia aged 65 and over is projected to hit four million in 2022, from only 2.4 million recorded in 2007. If you are a doctor in Strathfield or Bankstown, by 2056 you could be seeing one patient aged 65 and over for every two people of working age.
This ageing population is far more likely to access and maintain private health insurance, as they are far more likely to suffer health issues and thus require extensive cover.
Another factor is that of shifting government policy in the health sector, particularly in regards to private health insurance. One such scheme is the expansion of the Private Health Insurance Rebate, in which the government subsidises some of the cost of private insurance. This is particularly extensive for those aged 70 plus, as it can provide up to 37 per cent of the cost of private insurance in some cases.
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