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Monash University

Most Aussie Imaging Clinics Now Corporate-Owned

A new national audit has revealed that over half of Australia’s diagnostic imaging clinics are now owned by large for-profit corporations, raising questions about healthcare access, cost and quality amid growing corporatisation in the sector.

The research, led by Health Economist Dr Sean Docking, from Monash University’s School of Public Health and Preventive Medicine, found that eight for-profit corporations own 51 per cent of all diagnostic imaging clinics across the country.

Notably, in states and territories such as South Australia, Tasmania, Northern Territory and Australian Capital Territory, a single company controls 30 per cent or more of non-government imaging services.

“Diagnostic imaging services, such as x-ray, ultrasound and MRI, support early diagnosis and can enhance patient care,” Dr Docking said.

“It is a $6 billion market and an attractive investment opportunity for corporations and private equity firms.

“The receivership of private hospital chain Healthscope after its acquisition by private equity investors has recently placed this issue firmly in the headlines.”

The findings, published in Australian Health Review, raised concerns about the implications of high corporate ownership in health care, particularly around equity of access, overuse of services, and the potential misalignment of corporate financial goals with public health outcomes.

“The sale of Australia’s largest imaging provider, I-Med, is nearly finalised for a reported $3 billion,” Dr Docking said.

“While private investment can bring benefits, evidence from other countries suggest that corporate ownership is associated with higher healthcare costs.”

The study also found that ownership of MRI services among the most profitable imaging modalities is dominated by just four companies, who collectively control over half of the clinics providing Medicare-rebatable MRI services nationwide.

“These companies generate profits predominantly from taxpayer-funded Medicare rebates, making it essential for governments to ensure accountability and high-value care,” Dr Docking said. “This research lays a critical foundation for future investigations into how corporatisation is shaping the delivery and value of healthcare in Australia.”

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