Australians are known to spend actively for Dental care services as it can affect general health. More than ~ Australians are hospitalized each year for preventable dental conditions; the 2nd highest among acute potentially preventable hospitalizations during FY’2016. Oral cancer is the 8th most common cancer in Australia and dental disease has been linked to heart disease, diabetes, stroke and low birth weight babies.
64 dentists per 100,000 people in the cities but only 36 per 100,000 in outer regional areas and just 21 per 100,000 people in remote areas, highlight the scarcity of dentists in remote areas wherein people are required to travel to nearby cities to get their treatment done. The Government offers a Dental Relocation and Infrastructure Support Scheme (DRISS) that pays dentists between AUD 15,000 to AUD 120,000 to relocate to rural areas and Infrastructure Grants up to AUD 370,000.
The market for dental services in Australia was about AUD ~ Million in FY’2012 and grew steadily during the period FY’2012-FY’2017 to AUD ~ million in FY’2017. Major drivers of increased patient demand included general improvement in economic conditions, rising income and job security, incline in private health insurance funding and overall dental health and treatment awareness among Australian population.
Direct government funding for dental services has been limited compared to other sectors of healthcare. The Commonwealth currently funds the Child Dental Benefit Schedule and some partnership arrangements with the States and Territories. Although government funding comprised for a small proportion of the total expenditure, it aided in dental visits especially from financially weaker sections of the society. An increase in the number of Australian dentistry graduates over the last few years also fueled the market growth.
Majority of the dentists Australia operated through standalone clinics, with limited number of dental chains operating in the sector. As of FY’2017, the unorganized segment contributed about ~% market share to the total revenues of the dental services market. Large number of standalone clinics and comparatively lesser treatment cost were the major factors behind dominance of unorganized sector.
Individual or out-of-pocket expenditure on dental services comprised for a large part of revenues for overall Australia dental services market in FY’2017. This was over 4 times the average of all other health care expenditures. Majority of dental establishments in Australia are privately operated and private health insurance funds only partly covers for dental care treatment costs.
Increasing corporatization has resulted in quick growth of organized dental chains. The dental services market has witnessed consolidation and larger dental chains have aggressively acquired clinics to grow their network. Customers usually preferred organized dental chains for complex dental treatments as they are believed to employ highly skilled dentists and specialists.
Public dental services are usually delivered via mobile dental centers, school dental clinics and community dental clinics. Australian government’s contribution to lower income dental care in FY’2017 recorded an all-time low at AUD ~ million, far below from the originally promised AUD ~ million. Government’s contribution has declined in the last few years from AUD ~ Million in FY’2012 to AUD ~ Million in FY’2017.
More half of the Australian population had some level of private health insurance with dental cover. Private health insurance fund only partly covered for dental care treatment costs and didn’t offer a separate dental insurance plan. Dental insurance was covered as part of overall Health insurance schemes. Nevertheless, rise in private health insurance coverage has resulted in increased spending for dental care services.
Consultation, check-up, scale and clean is the first primary step that dentists follow prior to diagnosing and proceeding with the specific treatment plan for patients. As a result, preventive and diagnostic services comprised for a significant market share of ~% as of FY’2017. Rise in dental health awareness and routine check-up visit to clinics have aided in the market growth of preventive and diagnostic services.
The dental services market is highly fragmented with majority of providers operating from small scale single locations, although corporate activity in the sector is increasing. The market is in mid-late growth stage, recording low single digit growth year-on-year. However, organized dental clinics have grown at a health rate in the last decade by expanding their clinics network through acquisitions or organic growth.
Bupa Dental Corporation is the largest dental chain operating in the country with around 237 establishments and comprised for around ~% market share in the organized dental care market in FY’2017, in terms of revenue. The dental chain is owned by one the largest private health insurance organizations, Bupa. Maven Dental Group, Pacific Smiles and National Dental Care are other prominent players in the space which accounted for ~%, ~% and ~% market share in FY’2017, respectively. Other major dental chains operating in this sector included Primary Dental, 1300 Smiles, No Gaps Dental and All On 4 Dental which accounted for ~%, ~%, ~% and ~% market share respectively. All other organized dental chains comprised for the remaining ~% market share in FY’2017.
Australia’s ageing population, growing dental health awareness, inclining patient fee for dental services, rising out-of-pocket and private health insurance expenditure are likely to drive the market growth in the mid-long term. In 2012, CDDS ended and was replaced by program that would spend AUD 4 billion over 6 years, from 2013-2018. As a result, government funding would also aid in market growth till 2018, until new schemes are announced which might provide further stimulus.
Growing private health insurance coverage would largely stimulate market growth going forward as patients would be willing to visit dental clinics on a more frequently and undergo expensive procedures as part of it is funded by insurance funds.
The number of registered dental practitioners is anticipated to rise over ~ by 2022 from current ~. On the other hand, the number of dental establishments is expected to exceed over ~ by 2022 from ~ in 2017. Per capita expenditure on dental services is most likely to witness an incline from AUD ~ in 2017 to AUD ~ by 2022.
Rise in expansion of organized dental clinics network through acquisition of existing standalone clinics and establishment of new clinics would aid growth of the organized sector in the near future. The market is expected to witness rise in consolidation driven by rise in organized dental clinics network.
The organized sector is expected to grow at an impressive CAGR of ~% during FY’2017-FY’2022 to registers revenue worth AUD ~ Million by FY’2022. On the other hand, the unorganized sector is likely to registered growth at a CAGR of ~% during the same period to record revenues worth AUD ~ Million by FY’2022. This represented a market share of ~% in the overall dental services market in Australia in FY’2022.
Key Topics Covered in this Report:
Dental Government Funding Australia
Australia Dental Restorative Services Market
Australia Dental Preventive Services Market
Australia Dental Diagnostic Services Market
Australia Dental Endodontic Services Market
Australia Dental Prosthodontics Services Market
Australia Dental Surgery Services Market
Australia Tooth Extraction Market
Australia Organized Dental Services Market
Australia Organized Dental Facilities Market
Australia Organized Dental Clinics Market
Australia Corporate Dental Services Market
Australia Corporate Dental Facilities Market
Australia Corporate Dental Clinics Market
Victoria Dental Health Expenditure
New South Wales Dental Health Expenditure
Queensland Dental Health Expenditure
Western Australia Dental Health Expenditure
South Australia Dental Health Expenditure
Australian Capital Territory Dental Health Expenditure
Tasmania Dental Health Expenditure
Northern Territory Dental Health Expenditure
Australia Dental Tourism
Australia Dental Equipment and Consumables Market
Forecast Dental Clinics Revenue Australia
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