Australia Digital Health Market Analysis

Australia Digital Health Market Executive Summary

Australia's digital health market was valued at $2.5 Bn in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 20.10% from 2022 to 2030 and will reach $10.96 Bn in 2030. Australia is the world's sixth-largest country, with a land area of around 7.7 Mn square kilometers with a GDP of $1550 Bn economy. It is, nonetheless, one of the most sparsely populated countries in the world, with a population of only 25.7 Mn people. Australia’s health system is one of the greatest in the world, providing all Australians with safe and inexpensive health care. It is jointly run by all levels of the Australian government - federal, state and territory, and local. With over 14.2% of the population employed in the health sector, it is the country's largest employment sector. It includes a large private insurance industry as well as Medicare, Australia's national healthcare program.

Australia has experienced substantial changes to the way telehealth and virtual care services are reimbursed in the first half of 2020, as well as a rise in the use of digital health technologies by patients and the medical profession. To implement Australia's Long-Term National Health Plan, the Australian Government is investing $107.2 Mn towards the modernization of our healthcare system. The Government's sustained commitment to digital health includes $72 Mn over four years to support Phase Three of the Program, which will start the transformation of health payments and services toward a more streamlined, digital model, building on the success of earlier program phases.

Market Dynamics

Market Growth Drivers

IT companies are using a range of implementation strategies to increase the adoption of eHealth solutions that increase productivity in healthcare institutions, such as telemedicine, laboratory management systems, and clinical decision support systems. Businesses that educate healthcare professionals and payers about the need for follow-up following clinical treatments are seeing success with implementation. Deep medical learning is being improved by businesses in the digital health sector to predict a person's risk for dementia and Parkinson's disease. Some companies are getting better at utilizing artificial medical intelligence to identify possible sickness trends in people (AI)The key trends and opportunities in the digital health market as well as future trends are growing as a result of factors like rising smartphone adoption, improved internet connectivity, improved healthcare IT infrastructure, rising healthcare costs, rising prevalence of chronic diseases, rising demand for remote patient monitoring services, and increasing accessibility of virtual care

Market Restraints

Access: The ability to use and interact with digital health technology is strongly reliant on having internet connectivity, having safe, up-to-date devices, and having the necessary expertise and confidence to use and comprehend information.

​Health consumers who lack technology experience, are at a disadvantage owing to socioeconomic considerations or have a disability, cognitive impairment, dementia, or mental health concerns may find it difficult to utilize digital health services due to the complexity of the quickly evolving technology.

Interoperability and Data Development: Australians now have improved access to, ability to send, and ability to record health information because of advancements in digital health technologies (Services Australia 2021). High-quality digital information will always be a crucial component of healthcare. A better information-sharing and usage environment could result from advancements in the standardization and transmission of health data, in particular. These advancements depend heavily on interoperability and data creation.

Technical interoperability, or the capacity of two or more systems to communicate (the ability for communication to be meaningful and accurate). Both depend on reliable and consistent underpinning technical specifications and data standards, and they are both essential to the efficient movement of information between patients, practitioners, providers, and services. The National Digital Health Strategy's strategic aims include interoperability - the external site opens in a new window (National Healthcare Interoperability Plan) and seeks to improve the delivery of healthcare by expanding the exchange and availability of health data and information.

Data Literacy and Data Citizenship: Data literacy (the capacity to interpret and understand health data), data citizenship for the health care user (engaging with and using own health data in a meaningful, informed, consented, and empowered manner), and data citizenship for the health care provider (understanding the ethics, governance, and legal requirements for health data management) are key concepts in the context of digital health. The ability to share, access, and engage with technology as part of one's personal journey toward health and well-being is empowered by increased data citizenship and literacy, which promotes active involvement in digital health applications.

​Security and Privacy: Data security, privacy, and protection are more crucial than ever. Digital health systems must support safe data storage and sharing in order to satisfy regulatory obligations and foster public confidence in a climate where community awareness of data collecting, new data sources, methodologies, and technology has increased.

All private health care providers in Australia are subject to the Commonwealth Privacy Act of 1988- external site opens in a new window and the Australian Privacy Principles, which govern data containing personally identifiable information about a person.

Competitive Landscape

Key Players

• Alcidion Corp. (AU)
• Doctors on Demand Pty Ltd (AU)
• Ellume Limited (AU)
• Genie Solutions Pty Ltd (AU)
• Harrison-Al Pty Ltd (AU)
• HealthEngine Pty Ltd (AU)
• HotDoc Online Pty Ltd (AU)
• MedAdvisor International Pty Ltd (AU)
• Smiling Mind Pty Ltd (AU)
• Vaxxas Pty. Ltd. (AU)
• Azure
• Global Health
• Allscripts
• Telefónica S.A.
• Mckesson Corporation
• Epic Systems Corporation

Notable Deals

1. The Citadel Group purchased Genie Solutions, a provider of technology for medical practice administration, in November 2021 for an undisclosed sum that is estimated to be in the neighborhood of $260 Mn
2. Telstra paid $350 Mn in August 2021 to acquire the GP clinical and management software business Medical Director.
3. Livingbridge paid $500 Mn in August 2021 to buy a sizable controlling interest in Everlight Radiology
4. Seer Medical, a provider of technologies for epilepsy diagnosis and monitoring, raised $34 Mn in a Series A fundraising round in August 2021
5. For $95 Mn in July 2021, Telstra purchased the bulk of the stock in the provider of medical software Power Health
6. The Citadel Group purchased Genie Solutions, a provider of technology for medical practice administration, in November 2021 for an unknown sum
7. Harrison.ai, a provider of healthcare AI, raised $60 million in July 2021 through a $40 Mn Series B funding round and a $20 Mn investment from I-MED Radiology. (In December 2019, Harrison.ai raised $29 Mn in a Series A fundraising round.)
8. Eucalyptus, a telehealth firm, raised $30 Mn in a Series B fundraising round in July 2021. (In May 2020, Eucalyptus raised $8 Mn in a Series A fundraising round.)
9. Tyro Payments, a fintech company, purchased Medipass, a digital health payment platform, for $22.5 Mn in May 2021

Healthcare Policies and Regulatory Landscape

The National Digital Health Strategy is managed by the Australian Government portfolio organization, the Australian Digital Health Agency, on behalf of the industry. The organization's main goal is to provide a national infrastructure that makes it possible for data and technology to be used safely by patients, consumers, carers, and healthcare professionals.

By giving you access to the most up-to-date tools and technology, greater control, and better access to your health information, digital health can enhance your well-being. The Australian Government has come out with 3 digital services: 

1. Health Record: A place where patients may keep important medical records that are safe, secure, and accessible at all times to them and their healthcare providers, even in an emergency
2. Electronic Prescription: An electronic prescription is just a paper prescription in digital form. Doctors may email or SMS patients electronic prescriptions throughout the course of their appointment.
3. TeleHealth: Telehealth refers to communicating with a healthcare professional by phone or video call. When a physical examination is not required, many doctors, specialists, and other healthcare practitioners now offer telehealth consultations. When you can't see a doctor in person, it's meant to be a handy alternative rather than a replacement for necessary doctor appointments.