Psychiatric Hospitals in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: February 2024
ANZSIC Q8402Revenue
$1.6bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
12,039
Businesses
51
Wages
$X.Xbn
Psychiatric Hospitals in Australia industry analysis
Revenue growth for the Psychiatric Hospitals industry has been sluggish in recent years, constrained by changing government mental health care policies, which are favouring community-based preventative treatments designed to reduce the need for more costly treatment in psychiatric hospitals. These changing policy priorities are reflected in a downwards trend in the number of mental health beds available in public psychiatric hospitals. In some instances, these beds have been replaced by additional beds in specialised psychiatric units or wards within public acute hospitals, although these are not included within the scope of this report.
Trends and Insights
- Changing government mental health care policies have constrained the industry’s performance. Successive national mental health strategies have focused on prevention, decreasing hospitalisation and increasing the population's general wellbeing.
- Psychiatric hospitals treat mental and behavioural illnesses, which can be broken down using the World Health Organization's International Classification of Diseases. Patients can be treated for additional problems, but they’re classified by their foremost mental or behavioural disorder.
- The number of public psychiatric hospitals in each state and territory reflects government policies in relation to delivering mental health services. In some instances, publicly funded mental health care is provided through public hospitals with a specialised psychiatric unit.
- Public psychiatric hospitals provide free services to public patients, while private patients can pay out-of-pocket or have their treatment subsidised through private health insurance benefits in private psychiatric hospitals. This cost differential influences the industry’s competitive profile.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated $1.6bn in 2024.
Trends and Insights
National Mental Health Plans underpin the industry's operating backdrop
- The federal and state and territory governments share responsibility for mental health policies, programs and services, traditionally working together via five-year National Mental Health Plans. The Fifth National Mental Health and Suicide Prevention Plan (the Fifth Plan) was in place from 2017 to 2022 and formed the centrepiece of the government's National Mental Health Strategy.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Wider mental health care policies will help shape the industry's operating backdrop
- Over the past three decades, government policies have sought to reduce the country’s reliance on stand-alone psychiatric hospitals while investing in mental health services in a community setting. The National Mental Health and Suicide Prevention Agreement sets out the government's intentions to improve Australians’ mental health of Australians in priority areas, alongside ensuring that Australia's mental health and suicide prevention system is sustainable.
Biggest companies in the Psychiatric Hospitals in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
NSW Health | 295.0 | |
Ramsay Health Care | 235.0 | |
WA Health | 93.0 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Treatment for disorders caused by psychoactive substance use, Treatment for schizophrenia, schizotypal and delusional disorders and Treatment for mood disorders. Treatment for disorders caused by psychoactive substance use is the largest segment of the Psychiatric Hospitals in Australia.
Trends and Insights
Early preventative measures are leading to a drop in hospital treatments for mood disorders
- Mood disorders largely relate to instances where an individual's mood transitions either to depression or elation. Many mood disorders are recurrent, while others can be related to stressful or upsetting events.
- More insights available in the full report
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Competitors
- There are no industries to display.
Complementors
- Specialist Medical Services in Australia
- Community Services in Australia
- Aged Care Residential Services in Australia
- Public General Hospitals in Australia
- Private General Hospitals in Australia
International industries
- Psychiatric Hospitals in the US
- Hospitals in the UK
Table of Contents
About this industry
Industry definition
The industry consists of psychiatric hospitals that primarily provide specialist treatment for patients with psychiatric, mental or behavioural disorders.
What's included in this industry?
Treatment for disorders caused by psychoactive substance useTreatment for schizophrenia, schizotypal and delusional disordersTreatment for mood disordersTreatment for neurotic, stress-related and somatic symptom disordersTreatment for eating disorders, personality disorders and dementia, etc.Companies
NSW HealthRamsay Health CareWA HealthPurchase this report to view all 8 major companies in this industry.
Related Terms
COMMUNITY-BASED TREATMENTACCREDITATIONOCCUPANCY RATEELECTROCONVULSIVE THERAPYINPATIENTOUTPATIENTSEPARATIONIndustry Code
ANZSIC 8402 - Psychiatric Hospitals in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Changing government mental health care policies have constrained the industry’s performance. Successive national mental health strategies have focused on prevention, decreasi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Psychiatric hospitals treat mental and behavioural illnesses, which can be broken down using the World Health Organization's International Classification of Diseases. Patient...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The number of public psychiatric hospitals in each state and territory reflects government policies in relation to delivering mental health services. In some instances, publi...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Public psychiatric hospitals provide free services to public patients, while private patients can pay out-of-pocket or have their treatment subsidised through private health i...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry's major players reflect the industry’s mix between the public and private sectors. The established position of state health departments and Australia's largest p...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of NSW Health's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Ramsay Health Care's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of WA Health's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for NSW Health, and factors influencing its performance in the industry
- Description and key data for Ramsay Health Care, and factors influencing its performance in the industry
- Description and key data for WA Health, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Public psychiatric hospitals are owned and operated by state and territory governments, which provide partial funding for providing free services to patients with mental disor...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Psychiatric treatment largely involves primary care, with a variety of staff working to facilitate treatment. This means wages dominate the industry's cost structure. Expense...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Psychiatric Hospitals industry in Australia in 2024?
The market size of the Psychiatric Hospitals industry in Australia is $1.6bn in 2024.
How many businesses are there in the Psychiatric Hospitals in Australia industry in 2024?
There are 51 businesses in the Psychiatric Hospitals industry in Australia, which has grown at a CAGR of 0.4 % between 2019 and 2024.
Has the Psychiatric Hospitals industry in Australia grown or declined over the past 5 years?
The market size of the Psychiatric Hospitals industry in Australia has been growing at a CAGR of 0.1 % between 2019 and 2024.
What is the forecast growth of the Psychiatric Hospitals industry in Australia over the next 5 years?
Over the next five years, the Psychiatric Hospitals industry in Australia is expected to grow.
What are the biggest companies in the Psychiatric Hospitals market in Australia?
The biggest companies operating in the Psychiatric Hospitals market in Australia are NSW Health, Ramsay Health Care and WA Health
What does the Psychiatric Hospitals in Australia include?
Treatment for disorders caused by psychoactive substance use and Treatment for schizophrenia, schizotypal and delusional disorders are part of the Psychiatric Hospitals industry.
Which companies have the highest market share in the Psychiatric Hospitals in Australia?
The company holding the most market share in Australia is NSW Health.
How competitive is the Psychiatric Hospitals industry in Australia?
The level of competition is low and steady in the Psychiatric Hospitals industry in Australia.
