Report: Australian In Vitro Diagnostics Market Maintains Growth, Performs Well Among Developed Markets
NEW YORK, Dec. 15, 2014 /PRNewswire/ -- The Australian in vitro diagnostics (IVD) market is comfortably out-performing its counterpart IVD markets in the United States, Western Europe and Japan in terms of growth, according to Kalorama Information. While IVD markets in Australia and comparable countries remain vulnerable to government fee and reimbursement cuts for lab testing, Australian demand has consistently grown on a mix of economic growth, aging and the implementation of new tests in a top-rate healthcare system. Australia's universal healthcare system, Medicare, has facilitated consistent IVD market growth, but has also capped short-term market potential with fee schedule cuts and cost constraints. Continued growth in the Australian IVD market will have to overcome continued payment cuts to labs and patient co-pays to be introduced in 2015.
According to Kalorama Information's report IVD in Australia, the Australian IVD market will average annual growth just under 5% through 2018 compared to growth rates at or below roughly 2% in the United States, Western Europe, and Japan over the same period. Demand for lab tests has proven resilient under several negative macro-trends including tightened Medicare funding and slower economic growth. Growth has been led by segments relating to molecular tests, infectious disease tests, and specialty immunoassays. While volume growth has slowed for Australian IVD, the uptake of advanced tests and new products has been sufficient to grow market value.
"A lot of focus has rightfully fallen on an Australian public healthcare system that is finding it increasingly difficult to cover costs," related Emil Salazar, report analyst for Kalorama Information. "But the challenge exists precisely because of the growth in pathology spending, which relates to IVD demand. Pathology groups and labs have adjusted to lower payments through consolidation and updating tools."
By several indicators, the Australian IVD market has grown since the implementation of the Pathology Funding Agreement (PFA) for Medicare in 2011. An import-reliant IVD market, Australia has seen growth in diagnostics-related trade. Pathology companies such as Sonic Healthcare have found organic growth since 2011. Lastly, Medicare Benefits Schedule (MBS) outlays for pathology have grown even under new constraints (fee reductions become active when overall pathology payments surpass an annual 5% growth cap). Another challenge to the Australian IVD market will be $7 AUD co-pays to be introduced in July 2015 for general practitioner (GP) visits and pathology services. Similar copayment programs instituted abroad failed to appreciably reduce visit and pathology procedure volumes.
The Australian IVD market and its various segments are analyzed in context to the Australian healthcare system and patient population in Kalorama Information's report. IVD in Australia can be found at: http://www.kaloramainformation.com/redirect.asp?progid=86954&productid=8070639.
About Kalorama Information -- Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.
Contact:
Bruce Carlson
(212) 807-2622
[email protected]
www.KaloramaInformation.com
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SOURCE Kalorama Information
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