Products and Markets Segmentation
About 70% of all GPs operate from some form of private practice. Traditional GPs in small private practices offer primary care, diagnostic and treatment advice, prescriptions and referrals to specialists.
Some practitioners diversify to special interests including preventive health (e.g. addressing obesity, alcohol consumption and smoking), obstetrics, gynaecology, paediatrics or alternative medicine practices like acupuncture. These doctors will attract a range of clientele appropriate to their special interest while also operating a general practice, and some GPs will also make hospital visits as needed.
Doctors may be located in private practices owned and operated by one or more practitioners, or in larger clinics with several practitioners. This allows GPs to work various hours to provide longer opening hours, often with allied health services or a pharmacy alongside.
Some general practices provide home visitation and after-hours services. A telephone advisory service, run by 1900 Services Australia, is also now available on weekends and during the evening. However, the Medical Practitioners Board warned doctors that they could be liable for negligence claims if they provide advice over the telephone and the patient’s condition deteriorates.
According to the Australian Institute of Health and Welfare, the reasons for patients to see a GP have changed over time. There has been an increase in the number of reasons given (suggesting an increase in multiple-problem management, supported by the results), a move toward more requests for services (check-ups and prescriptions) and away from presentations of symptoms and complaints. The introduction of Medicare item numbers specifically for health assessments of at-risk groups could explain some of the increased requests for check-ups. Publicity campaigns urging skin, cancer and sexually transmitted infection checks may also have contributed.
Major players
Other (89%), Primary Health Care Ltd (6%) , Sonic Health Care Ltd (5%)
Industry outlook
Doctors are a cornerstone of the health system in Australia and general practitioners are at the coalface. The Australian health system is expected to continue growing at a strong pace. Revenue of the General Practice Medical Services industry is expected to reach $12.8 billion in 2017-18, growing an annualised 4.0% in the five years through 2017-18. Revenue growth will come primarily from an increase in the number of services provided. There is expected to be little, if any, increase in unit prices for comparable services and this will put some pressure on industry profit margins.
The number of GP Medicare services is forecast to increase an annualised 2.8% in the five years through 2017-18, resulting in an increase in the number of services per capita. The demand for GP services will likely be promoted by population growth, the ageing of the population, an increasing prevalence of chronic diseases, technological advances in medicine and an increase in the range of GP services available. According to the Australian Institute of Health and Welfare, more than 50% of consultations with GPs are attributed to people with a chronic condition, such as heart disease, cancer or diabetes. There is expected to be a slight decrease in bulk-billing rates over the next five years. Medicare rebates are likely to increase at a rate below consumer price index increases.
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