Healius Limited · ASX:HLS
Healius — Primary Health Care — 4th MABEL Research Forum (May 2016)
12 slides from Healius's conference presentation, May 6, 2016
Slide 1: The role of corporate medical practices
4th MABEL Research Forum 6 May 2016 University of Melbourne The role of corporate medical practices Dr Joanne Epp, Health Economist Primary Health Care Limited 1
Slide 2: Background on Primary Health Care
Background on Primary Health Care Primary Health Care has three business divisions • #1 national provider of large-scale medical centres (58 sites) Medical • ~$330m in revenue p/a Centres • ~8 million patient consults p/a • ~1000 medical practitioners; ~1650 employees • #2 national pathology provide
Slide 3: Primary Health Care: National Footprint
Primary Health Care: National Footprint Primary has an Australia-wide network of providers and market-leading infrastructure 17 Pathology Sites 13 Medical Centres 36 Imaging Sites Northern 660 Pathology Sites Territory Queensland Western Australia South 29 Medical Centres Australia 67 Imaging Sites
Slide 4: Primary's Medical Centres
Primary’s Medical Centres Primary has 71 medical centres of which 58 are large-scale Patient Benefits Doctor Benefits • Community-based location • Opportunity to earn materially higher incomes • Attractive, well-equipped and purpose-built via facilities provided facilities • Service provision / cent
Slide 5: Primary's "Medical Home" Model
Primary’s “Medical Home” Model Primary’s “Medical Home” provides multiple services under ‘one roof’ • Co-location of services under ‘one roof’ enables superior coordination and GP continuity of care. Healthier Medicare is Physio Pharmacy moving care towards a ‘medical home’ model, albeit not under ‘
Slide 6: The trend to larger medical practices has been driven by funding pressures
Medical Centres Market The trend to larger medical practices has been driven by funding pressures Funding pressures • Chart shows higher growth in CPI and AWE compared to growth in MBS fees since 1985. • During the 1990s, MBS rebates paid to GPs were largely unchanged (<1% growth). This was insuffic
Slide 7: The trend to larger medical practices and market consolidation
Medical Centres Market The trend to larger medical practices and market consolidation Change in size of practices Size of practice – number of full-time equivalent GPs 45% 45% 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 0% 5% Solo 2-4 5-9 10-14 15+ 0% Source: BEACH 2015 Solo 2–4 5–9 1
Slide 8: GP labor market preferences have facilitated trend to larger practices
Medical Centres Market GP labor market preferences have facilitated trend to larger practices • Large/corporate medical centre model meets needs of GPs who don’t want to run their own medical practice. MABEL survey shows this is a large component of GP workforce. Non- Principals principals Satisfied
Slide 9: Growing number of doctors entering the market with different working expectations
Medical Centres Market Growing number of doctors entering the market with different working expectations GP numbers are driving market growth Growth in GP numbers (Full-time • Over the past decade the average annual Service Equivalent) growth in GP numbers has been faster than 12% population growth
Slide 10: Conclusion
Medical Centres Market Conclusion • Role of corporate medical practices likely to continue to increase: 1. Bring service innovation to the sector (“medical home”). 2. Bring operating efficiencies through scale to offset funding pressures. 3. Have access to capital to invest in innovation and scale.
Slide 11: Primary 'Super-Centre'
Primary ‘Super-Centre’ Warringah Medical and Dental Centre, Brookvale NSW, opened in FY 2015 11
Slide 12: Disclaimer
DISCLAIMER This presentation has been prepared by Primary Health Care Limited (ACN 064 530 516) (‘PRY’). Material in this presentation provides general background information about PRY which is current as at the date this presentation is made. Information in this presentation remains subject to chan
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