Australia’s relatively successful COVID management strategy is being challenged by supply disruptions and public hesitancy, which are delaying vaccination timelines as the Delta variant surges. Australian authorities are ramping up the pace of the vaccine rollout, with snap lockdowns in major cities. Given these challenges, the government will attempt to balance its COVID-19 response against its broader healthcare agenda.

Australia healthcare companies should expect the government to continue to demonstrate commitment to fiscal support for national healthcare reform, including strong support for preventative care and home-based aged care, and for its long-term healthcare agenda. Executive teams need to monitor changes in the market as they finalize their 2022 strategic plans, particularly in these three key areas:

  • Australia is confronting a third wave of COVID-19 infections, driven by the Delta variant and persistent delays in the country’s vaccination drive, despite early purchases of vaccines. Nonessential elective surgeries have been suspended in the Greater Sydney area, demonstrating a continued risk to demand planning until a certain level of herd immunity is achieved. We still expect Australia to achieve the necessary levels of herd immunity in the first half of 2022.
  • The Morrison government continues to signal persistent fiscal support for its long-term healthcare agenda despite the economic headwinds and continued challenges of COVID-19. Healthcare companies should expect the current government to continue driving increases in fiscal support for the healthcare sector through the medium term, including through the MBS and PBS.
  • The MBS Review implementation continued this year, with a focus on orthopedic and cardiac surgeries, and the Morrison government has already indicated further changes coming in 2022. MBS fees will continue to see modernization measures, which will create shifts in payer and provider behavior for affected sectors over the coming years.

FrontierView combines world-class strategic market intelligence and analyst advisory services through data, insights, and analytical tools, to power your business decisions. We offer a solution that puts the right information at the right time, at your fingertips. If you would like to request access to the full Australia Healthcare Review, start a free trial of FrontierView. You can also download our free mobile app to stay ahead of developments and trends to enhance your performance in must-win markets. Available on iOS and Android.