As insurance premiums continue to rise (by over 5 per cent per annum for nearly a decade according to PwC), the medical sector in Australia will continue to adapt in order to meet changing times. But what does the future of Australian healthcare look like now, and what role will accounting expertise have to play in making sure the sector stays efficient?
Health insurance premiums were recently raised by over 5 per cent in government medical sector reforms.
Three factors that affect Australia’s healthcare sector
1. Aging population
The Australian Bureau of Statistics shows that the number of people aged 65 years and over increased from one in seven in 2011 to nearly one in every six people two years ago. This is exemplary of a wider demographic shift, with higher quality of life, improved medical facilities and lowered fertility rates contributing to a steadily aging population. This means as time goes on, health care institutions will have to grow and become more efficient as they aim to help an increased number of people dependent on medical support.
2. Medical technology
Another factor that will affect Australia’s healthcare sector is the increasing use of medical technology. Digital disruption will affect all sectors in the coming years. The majority of medical technology businesses are based in NSW according to the Department of Industry, Innovation and Science, meaning the state will be the testing ground for much of the latest healthcare devices.
Investing in medical technology that will drive growth and change in your private healthcare facility is therefore vital to future success.
3. Government influence
The final factor that could affect the future of Australian healthcare is the influence of government legislation. Each budget brings public crucifixions of federal decisions around healthcare – however, this seems to be misguided. The Australian Institute of Health and Welfare shows that successive budgets have seen a consistent increase in medical sector spending for over a decade. However, this gradual change will not be enough to meet the public’s needs.
Meanwhile, recent government health reforms have seen the rise in insurance premiums limited. This could shift the balance in the medical sector in favour of private businesses, presenting opportunities for existing facilities to become more efficient.
Each government Budget has increased medical sector expenditure every year since 2004.
How medical businesses can prepare
Preparation for these changes is vital for businesses who want to remain competitive. Financial compliance and accounting expertise will be vital for businesses who mean to excel in the future of Australian healthcare. Getting your accounts in order and ensuring you’re prepared for tax time is easier when you enlist the help of business service professionals who have a finger on the pulse of what Australian medical businesses need.
For help with your accounting or other financial assistance, contact the healthcare enterprise experts at DFK Crosbie today.