Making Health Care Sustainable

Anna Rue
Anna Rue

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PPG was commissioned by Healius Limited to assess the economic sustainability of the ​Australian pathology industry and quantify any government investment needed to protect ​essential services and jobs.

Our report finds that the cost of providing pathology services has increased dramatically due ​to high inflation. Pathology revenues remain depressed post-COVID and a government ​funding freeze means that the pathology sector is now on an unsustainable footing:
  • Medicare rebates for pathology services have been cut by 12.5% since 2008, while prices ​in the economy have risen nearly 52%.
  • The government funding freeze has cost the pathology sector $13.8 billion since 1999.
  • On top of this, pathology providers have provided $9.8 billion in free tests since 1992 ​and will provide another $3.7 billion in free tests over the next four years.
  • One-third of pathology collection centres – and thousands of pathology workers – are in ​regional, remote, and Indigenous communities. Many collection centres are currently ​unprofitable and at risk of closure without additional government funding.
  • The Australian Government will need to invest around $890 million over the next four ​years to protect essential pathology services and jobs, which can be funded from any ​underspend of the Government’s $3.5 billion triple incentive for GP bulk billing.

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