Healthcare & Pharmaceutical
The Health Care and Social Assistance industry is the largest employing industry in Australia. It offers employment to about 14.2 % of the population.
Australia’s healthcare has a world-class management system. The Pharmaceutical Industry has played a significant role in the success of its healthcare system.
In 2021, the Health Services industry will have a market size of USD 162.5 bn and is expected to grow by 2.9% in 2021. The Australian Health Service Industry has grown by around 1.5% per year between 2016 and 2021.
The Australian healthcare market is set to grow to an impressive USD 42.5 billion by 2020, driven by universal healthcare coverage provided by Medicare and good access to facilities such as government-subsidised medicines.
The Australia pharmaceuticals market was valued at USD 25.2 bn in 2020, and it is expected to reach USD 28 bn in 2026, witnessing a 2.1% CAGR growth over the forecast period, 2021-2026.
Facts and figures
Most of the pharmaceutical and biotechnological companies had shifted their focus toward R&D departments to identify new molecules or leads for the treatment of this disease, which are in the final phase of clinical trials.
In January 2021, the Therapeutic Goods and Administration approved the COVID-19 vaccine developed by Pfizer and BioNTech. In addition to this, the Australian government has gone under nearly four agreements where it has invested around USD 2.45 billion to support the supply of vaccines in the country.
The country invested around USD 269 million in research and development activities related to the prevention and treatment of COVID-19. Such developments are further expected to accelerate market growth.
Per capita, consumer spending on healthcare in Australia & Oceania amounts to an estimated USD 1,539 in 2021. By 2025, that figure is forecast to reach USD 1,808 per capita.
Patient-centric care: Since the patients demand more sophisticated, convenient, and personalised service. To make it more convenient the healthcare department is working more on their business models. Such as:
- Increasing usage of the model which can reduce there lies waiting period of patients as well as reduce the duration of elective surgery.
- Increase in the use of EMR that contains the medical and treatment history of the patients in one practice.
Smart Hospitals: A smart hospital relies on optimised and automated queue management systems built on an environment of interconnected assets to improve existing patient care pathways and introduce new capabilities. To map capability to the patient hospitals they need to:
- Map the end-to-end patient journey (interactions, needs, pains, gains).
- Align the patient journey to healthcare practitioner journeys (HCPs).
- Identify the people, processes and technologies required to deliver the patient journey.
- Plan a rollout based on cost to serve vs value delivery.
Healthcare technology is likely to adopt technology such as big data and cloud solutions that were introduced to digitise healthcare. These technologies can help the hospital to maintain the data for analysis.
The prescription drugs segment holds the largest share and is expected to do so in the forecast period.
- A prescription drug is a pharmaceutical drug that legally requires a medical prescription to be dispensed. The growing product launches are expected to drive market growth.
High-risk medicines (HRMs) are medications that have an increased risk of causing significant patient harm or death if they are misused or used in error. For example, there is increasing suspicion that several drugs in four widely used classes of non-cardiovascular medications-fluoroquinolone and macrolide antibiotics, antipsychotics, and antidepressants- are pro-arrhythmic and thus increase the risk of sudden cardiac death.
Strategic risks such as in the implementation of the patient-centric platform will also become challenging for the healthcare segment since most of the patients are likely to have the advancements in the technology adopted.
The aging population, rising expectations from healthcare services, pressure to bring down costs, and a lack of medical specialists in some areas are all challenges that need to be addressed.
Patient health risks associated with manipulating data or tampering with medical devices and subsequent disruption in the ability to serve patients (e.g., hacking digital platforms and tools used by “Science and insights engine” businesses).
Patient harm from supply chain errors leading to inappropriate/unsafe personalised medicines reaching patients (e.g., lack of supply chain controls used by “Connectors and intermediaries” leading to spoilage of personalised medicines).
Identify the barriers to implementing change. This includes anything that might obstruct or slow down the adoption of a new clinical intervention, such as feasibility, existing care processes, or existing team culture.
Australia has a parallel private hospital system, and its health policy encourages a robust public hospital system complemented by private hospitals; hence, patients may choose to go to a private or public hospital.
Certain factors show an impact on the healthcare industry like aging factors, the long waiting period for elective surgeries which are affecting the healthcare industry.
The good part is that most of the healthcare is patient care and focuses more on the betterment of the process of the journey of the patients.
Certain risks require to be minimised in certain areas like implementation of the proper patient-centric journey in the waiting period and for elective surgeries.
Lack of supply chains in the pharmaceuticals also showcases that there requires a change in the approach of supply of medicines.