3 key factors driving healthcare industry growth in 2023

We’re lucky to have world-leading healthcare systems in both Australia and New Zealand, the heavily subsidised healthcare system is free or low-cost. That said, our healthcare is changing and evolving at breakneck speed due to societal trends, technology and investment.

There are various key factors driving the growth of the healthcare industry in 2023. Here’s a quick snapshot.

#1 An aging population

An aging population can have considerable impacts on the economy and the healthcare system overall. It might lead to fewer working-age people, which can have knock-on effects such as lowered productivity and higher labour costs as businesses scramble to fill in-demand occupations. There’s also concerns of the ability of the health system to serve increasing numbers of older people needing care.

And it’s no secret that the populations in Australia and New Zealand are getting older. The percentage of the Australian population aged 65 and over has increased from 4.6 percent in 1922, to 16.2 percent in 2021, according to the Australian Institute of Health and Welfare. And in NZ, one in every 6 people is aged 65 or older.

These figures are expected to rise, too: by 2028 in New Zealand, the amount of people aged 65+ is predicted to hit 1 million. And in Australia, it’s predicted that older Australians will make up between 21-23 percent of the population in 2066. It’s a big demographic shift that’s driving the demand for healthcare services and industry growth in general.

#2 Advances in technology

Anyone who spoke to a doctor through a screen during the pandemic will know just how convenient and easy telemedicine can be. And it’s just one of a range of tech advances transforming the Australian healthcare industry, along with moving patients away from paper records and onto electronic health records. We’re seeing similar moves in NZ.

Global artificial intelligence in healthcare and machine learning are being integrated more and more into the industry, enabling early identification of diseases and better patient care. And, we’re seeing wearable medical devices also helping to drive growth in healthcare, providing more efficient delivery of care and freeing healthcare staff up to take on other tasks.

There’s also a call for increased investment in new healthcare innovations – and many experts believe Australia is poised to position itself as a world leader in innovative medicines and diagnostics. That’s not only good for our economy, but for patient outcomes too.

#3 Healthcare spending

A big factor driving healthcare industry growth in 2023 is increased healthcare spending. Research shows that government and private spending is increasing around the world in the healthcare sector, simply because there’s more awareness around health, wellness and having a robust healthcare system. Of course, the increased spending leads to greater investment in the industry overall.

In Australia, millions are being spent on rural health initiatives, digital and telehealth services, research and other health sectors. The total spending on health in 2022-23 is estimated at $105.8 billion, which is 16.8 percent of the Australian Government’s total expenditure. In New Zealand, the government has set aside over NZ$600 million to invest in its healthcare system’s data and digital infrastructure.

Now, if some of that funding could be put towards better salaries for nurses and other healthcare staff, we’d be even happier!

There are other factors, too, say recruitment specialists

Recruitment agencies specialising in the healthcare industry are well aware of the current trends driving growth in the sector. And there are more than the few we’ve mentioned above! Other trends we’re seeing are around the rise in more personalised healthcare, and in retail healthcare providers (such as pharmacies easing pressure on GPs by offering vaccines and so on – something that became very much the norm during the pandemic).

We work across many areas of healthcare and are always available to provide advice and intel about candidates, salaries and more. So if you need any help, get in touch.