Making Health Care Sustainable

Anna Rue

I personally guarantee that we will honestly and decently do our job!

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.

Media coverage of our report

“Blood tests have been free for decades. Pathologists are warning that could end.”

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Making Health Care Sustainable

Making Health Care Sustainable

Anna Rue

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