How are successful Australian healthcare businesses driving growth?

Australian healthcare industry leaders face a complex task of balancing growth with long-term sustainability and the delivery of high-quality care. A confluence of trends – from inflation and pricing pressure to workforce availability, growth in digital technologies and shifting patient expectations – is shaping the sector’s outlook. What does this mean for healthcare businesses? And what are successful healthcare providers doing right?

These are two key questions explored in CommBank’s annual Health Insights Report, which examines trends in Australian healthcare spending across medical specialists, dental services, pharmacies, allied health providers and veterinarians.

“Our data shows that consumer spending has increased across all these sectors of healthcare,” says Rebecca Grover, General Manager, CommBank Health. “However, healthcare providers are seeing a clear shift in how revenue is generated, and understanding and adapting to these changes can help them grow sustainably, while meeting the needs and expectations of their patients.”

Pricing drives growth

While consumer health spending is rising across Australia, CommBank’s report shows spend per visit is contributing more to growth than frequency of visits. However, the drivers behind this growth differ significantly depending on how each sector is funded.

In human health services such as dentistry, spend per visit rose steadily to an average of $330, while the number of patients and the frequency of visits remained almost unchanged. 

In the veterinarian segment, a separate baseline applies; the average spend per visit rose by 6% over the past year to $265, while the frequency of visits declined moderately.

Grover notes that growth in spending does not always reflect stronger demand. Factors like service mix, case complexity, purchasing preferences and pricing play an important role across these private out-of-pocket categories.

For government-subsidised sectors, such as medical specialists, Grover explains that distinct pricing pressures are at play. “Growth is increasingly being driven by higher fees per consultation rather than an increase in patient volumes, and this is closely tied to ongoing changes in Medicare rebates and rising operating costs,” she says.

She adds that pricing pressure is shaping consumer healthcare behaviour, with some Australians delaying or forgoing care altogether, due to out-of-pocket expenses.

“As a result, top-performing healthcare businesses in these subsidised fields are striking a careful balance,” she says. “Many continue to prioritise access for vulnerable populations through options like bulk billing, while ensuring that they are charging appropriately for complex care for other patient cohorts.”

“Top-performing healthcare businesses in these subsidised fields are striking a careful balance. Many continue to prioritise access for vulnerable populations through options like bulk billing, while ensuring that they are charging appropriately for complex care for other patient cohorts.” – Rebecca Grover, General Manager, CommBank Health

“We are also seeing multidisciplinary care becoming more embedded, with nurses, allied health professionals and support staff playing a bigger role in triage and treatment. This shift is helping services operate more efficiently while improving patient access, although funding models still have a way to go to catch up. Consultations are getting longer and there’s a growing acceptance that more comprehensive, higher-quality care may come at a higher cost.”

Digital front door makes a difference

Digital technologies have fostered new levels of customer expectations across all sectors, including healthcare. CommBank’s report shows a rise in telehealth and online spending across key healthcare segments. For medical specialists, for example, the growth in payments for online consultations was faster than for in-practice (11.5% versus 5.5%), signalling higher adoption of telehealth services among specialist patients.

Grover says the digital front door – from online bookings and purchasing to telehealth appointments and payments – is not only a consumer convenience but a key driver of growth. Another key factor of the digital front door is also between providers, accelerating the speed of access to care.

“When done well, it improves efficiency and strengthens patient connection and loyalty,” she says. “Patients are more likely to return to services that offer a simple, intuitive experience that fits into their daily lives.”

Grover adds that human healthcare businesses that are able to adopt digital services can also address a key healthcare challenge – access to services and workforce shortages.

“Telehealth continues to expand access, especially in rural and remote Australia where workforce shortages are most acute,” she says. “Mental health services have been a standout example, with virtual care helping to bridge gaps in access. Flexible [human healthcare] models, such as clinicians splitting time between in-person and telehealth consults, are also helping services to extend their reach, without overextending their workforce.”

“Flexible [human healthcare] models, such as clinicians splitting time between in-person and telehealth consults, are also helping services to extend their reach, without overextending their workforce.” – Rebecca Grover, General Manager, CommBank Health

Workforce shortages are also prompting healthcare providers to rethink how care is delivered.

“Tasks that don’t require a senior clinician are increasingly handled by nurses or referred to allied health providers and specialists,” says Grover. “At the same time, digital tools are helping to ease administrative burden, whether through online bookings, AI-supported clinical documentation or automated referral and communication systems.

“These changes are not just about convenience – they’re critical to maintaining capacity. Reducing reliance on large administrative teams and streamlining front-desk operations can deliver cost savings, while allowing businesses to focus resources where they’re needed most.”

Grover adds that this integration of AI – particularly through AI-supported clinical documentation – is playing a more practical role in improving operational efficiency across Australian healthcare settings.

“Clinicians can move away from paper-based processes and instead access pathology,

imaging and referral information in real time,” she says. “For patients, this can translate into a smoother experience, from pre-admission processes to faster follow-ups.”

Demographic impacts

While healthcare spending is up, CommBank’s report shows growth is increasing faster for some age groups than others across human service types.

Across allied health, spending among those aged 25–34 grew by 1% year-on-year, then climbed by age group, with over-75s increasing spending by 17%.

Belinda Allen, Head of Australian Economics, CommBank, says this reflects a broader structural shift across the economy.

“Australians aged 65 and over represent almost the largest share of the population, and they tend to have the wealth and the income to continue to spend during these more challenging cost-of-living times,” she says.

“Australians aged 65 and over represent almost the largest share of the population, and they tend to have the wealth and the income to continue to spend during these more challenging cost-of-living times.” – Belinda Allen, Head of Australian Economics, CommBank

Older people also typically require more medical care, which contributes to their higher spend.

“One of the more interesting dynamics is that older Australians are continuing to work longer and retire later, so that’s supporting wealth and income as they age,” she adds. “They are able to have more choice as to how they spend their money.”

Policy changes may also have an impact on spending. The recent PBS co-payment reduction, for example, lowers out-of-pocket costs per script and may affect transaction values and volumes.

“We’re seeing quite a lot of policy change in healthcare, such as funding changes to aged care and the NDIS,” says Allen. “This could lead to some shifts in what households spend in terms of health.”

Adapting to change

Grover says healthcare businesses that adapt their capacity, resourcing and patient experiences around their patient mix and demand may be better placed for sustainable growth.

“There’s an increasing focus on measuring growth in ways that don’t compromise care quality,” she says. “Metrics like wait times, appointment availability and continuity of care are becoming critical indicators of performance.”

“Metrics like wait times, appointment availability and continuity of care are becoming critical indicators of performance.”– Rebecca Grover, General Manager, CommBank Health

To set themselves up for long-term success, Grover says healthcare providers are focusing on key priorities such as redesigning operating models to embed multidisciplinary care and reduce administrative burden.

“A strong digital front door will also be an important growth engine, as well as data-driven approaches to managing patient flow,” she says.

“There’s also a renewed emphasis on preventative care and long-term patient engagement,” Grover adds. “Simple strategies like reserving appointment capacity or proactively rebooking patients can help to maintain access and improve health outcomes for the long term.”