Majority of Australian Diagnostic Imaging Clinics Now Owned by For-Profit Corporations, New Study Finds

A recent comprehensive national audit has highlighted a significant shift in the ownership landscape of Australia's diagnostic imaging sector. The findings reveal that more than half of the imaging clinics across the country are now owned by large for-profit corporations. Led by Dr. Sean Docking from Monash University's School of Public Health and Preventive Medicine, the research uncovered that eight major corporations collectively control 51% of all diagnostic imaging clinics in Australia. This ownership concentration is particularly pronounced in states and territories like South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory, where single companies hold a market share of 30% or more of non-government facilities.

Diagnostic imaging services—including X-ray, ultrasound, and MRI—play a crucial role in early diagnosis and patient care. The sector is valued at approximately $6 billion, making it an attractive investment for private equity and corporate entities. The recent acquisition of private hospital chain Healthscope by private equity investors has intensified scrutiny over this sector.

The dominance of corporate ownership raises numerous concerns regarding healthcare access, cost escalation, service overuse, and whether the financial objectives of these companies align with broader public health goals. Notably, the sale of Australia's leading imaging provider, I-Med, for nearly $3 billion, exemplifies the growing influence of private entities.

Ownership of MRI services, one of the most profitable imaging modalities, is especially concentrated among four companies, which control over half of the Medicare-rebatable MRI clinics nationwide. Since these services largely rely on taxpayer-funded Medicare rebates, there's an urgent need for government oversight to ensure accountability and high-value care.

This research provides a vital foundation for ongoing investigations into how corporatization impacts healthcare delivery and its value to the public. It underscores the importance of balancing private investment with policies that safeguard equitable and cost-effective health services.

Source: https://medicalxpress.com/news/2025-06-reveals-majority-australian-diagnostic-imaging.html