There is no better way to examine the GP Medical Industry than consulting with a leading health industry business broker. Brad Potter from the Health Linc, Specialist Health Care Brokers, has over 30 years of experience in the industry. His experience covers GP practices, dental, pharmacy, veterinary and various other allied health businesses. Brad has sold over 500 businesses. In particular his advice has been sought for the “Current Market for GP Practice Sales” section of this article.
On “face value,” annual revenue growth for the GP Medical Practice industry in Australia, has been modest over the past 5 years. However, this is not a true reflection of total revenue flowing into the industry. Most GP practices have a structure where doctors are subcontractors and receive a percentage of the fees earned. In previous years the percentage of fees paid to doctors, was in the order of 60% to 65%. Given a shortage of doctors and high demand for their services in recent years, this has increased to a main range of 65-75%. It is most often the case, that only the remaining 25-35% portion of fees, is then accounted for in the revenue of the GP practice and industry.
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