By Healthcare Facilities Today

New analysis from Frost & Sullivan's "Strategic Analysis of Facilities Management Market in Healthcare – Australia," said that the mature facilities management market for healthcare in Australia is expected to expand at a compound annual growth rate of 3.1 percent between 2012 and 2019.

In 2012, 22 percent of the healthcare facilities management services were outsourced and 78 percent delivered in-house. Furthermore, 30 percent of the outsourced facilities management services was delivered as an integrated facilities management solution, while 70 percent was delivered as 'other services,' according to a Frost & Sullivan press release posted on the Digital Journal website.

Frost & Sullivan is a growth consulting firm which provides market research and analysis, growth strategy consulting, and corporate training services.

The consolidation of the healthcare sector has affected the business of smaller and medium healthcare facilities of general practitioners in Australia's major cities. To keep them afloat, there have been several state-based initiatives to expand the role of general practices and reduce the pressure on hospitals or nurse-led clinics. These new models provide additional opportunities to facilities management service providers.

"Furthermore, the expanding elderly population has placed a strain on Australia's healthcare workers and heightened focus on disease prevention," said Frost & Sullivan energy and environmental consultant Nelly Appelhanz in the release. "This intensified need for healthcare services has translated to greater FM requirements."

Facilities management service providers will also feel buoyant about their prospects due to the steady investments in healthcare, the relase said. The several new hospitals being built across Australia and the expected repairs and refurbishments of outdated healthcare facilities bode well for the facilities management market.

On the flip side, this spate of developments has constrained healthcare budgets, the release said To lower the pressure on hospitals and reduce duration of hospital stays, the public healthcare sector is connecting primary health, community, and residential care services. While this augurs well for service providers that cater to community, aged care, and residential care facilities, facilities management companies will experience lower demand for facilities such as linen or food services.

In a changing marketplace, the facilities management market's success depends on its adaptability to advanced technology, shorter life-cycles of medical equipment, and smaller equipment size. The need for improved workflow effectiveness and energy efficiency has a telling effect on the new types of facilities management service types. These innovative services now offer sensors for automatic light or temperature adjustment and improved use of hospital floor space to serve more patients.

"Overall, facilities management service providers that understand the demands of existing hospitals and the ways to accommodate technology changes in these buildings will benefit from future FM outsourcing decisions in the healthcare sector," said Appelhanz in the release.

Read the article.