Private Hospitals: The Center-of-Excellence and Academic Medical Centre opportunity

Market context – why do Private Hospital operators need to innovate?

The private hospital market is under pressure. In Australia, stagnant PHI membership, cost-inflation, and workforce constraints contribute to declining investor confidence

Considering recent market exits (e.g., HealthScope), there is an urgent need for the private sector to differentiate to maintain financial viability so it can continue to serve its critical purpose in the healthcare system

One way forward is through building Centres of Excellence (CoEs) and Academic Medical Centres (AMCs) to attract patients, talent and funding

Sources: Foundry analysis, Private Hospital Sector Financial Health Check 

CoEs and AMCs both offer a resilient route for expansion and growth

Sources: Foundry analysis 

CoEs and AMCs have been shown to improve outcomes across five value levers

Sources: Foundry analysis, Global case studies, Industry Experts

An operator may choose a CoE model based on alignment to strategy

Sources: Experts

KPJ: Establishing an AMC enabled uplift in talent and high-margin medical-tourism cases

Sources: Publicly available information, Experts