GP Medical practices were last reviewed by the Business Values Newsletter in edition No. 90 of December 2005. Key drivers of the industry are population growth, growth in the older segment of the population and Federal Government (Medicare) subsidy policies. Although there are still no dominant players in the industry, a trend to greater commercialisation/larger practices as well as the entry of corporates buying up practices, has led to stronger prices paid in recent years.
• Current annual revenue $13.9 billion.
• Annual revenue growth 2016–2021 – 1%.
• Profit margin – 8.9%.
• Projected annual growth 2021-2026 = 2.7% per annum.
Medicare funding has increased over the past five years, as larger GP practices have invoiced more patient visits based on bulk billing.