Broker opportunities on the rise as medical practices become larger, more capital intensive, writes Kaz Carter, national general manager commercial third party, BOQ Business
Healthcare has long been seen as a resilient sector, but today it is also one of Australia’s biggest growth stories. In 2023–24, Australia spent an estimated $270.5 billion on health goods and services, or about $10,037 per person and 10.1% of GDP. Governments funded almost 70% of that spend, while non-government sources, including individuals and private health insurers, funded the balance.
Behind those numbers is a sector under pressure and investing to keep up. Australia’s health care and social assistance sector employed around 2.24 million people in 2024, or about one in six employed Australians, and is forecast to be the nation’s fastest-growing industry over the next decade.
Doctors, dentists, vets, allied health practitioners and medical specialists are not only providing essential care, but many are running increasingly sophisticated businesses that need finance for premises, equipment, acquisitions, goodwill, technology, fit-outs and succession.
Healthcare remains a priority sector
The fundamentals are strong, but the operating environment is changing quickly. Australia’s ageing population, higher chronic disease burden and rising mental health needs are increasing demand for primary care, specialist services, diagnostics, allied health and community-based care.
Recent Australian Institute of Health and Welfare (AIHW) data shows chronic conditions account for more than half of disease-related spending, while cancer, cardiovascular disease and musculoskeletal disorders remain among the highest-cost disease groups. That demand profile is pushing more care into local practices, day hospitals, diagnostic centres and multidisciplinary clinics.
Industry trends creating broker opportunity
Several trends are creating new lending conversations. Practices are becoming larger, more specialised and more capital intensive. Many are investing in digital systems, clinical technology, specialist equipment, larger premises and multi-practitioner models, while others are looking at acquisition, partnership buy-ins or succession.
Digital health is now part of mainstream care. Telehealth, electronic records, electronic prescribing, remote monitoring, diagnostic technology and AI-enabled tools are changing how patients access care and how practitioners manage capacity. That creates investment needs, but also better productivity and more scalable practice models.
Workforce pressure is another important part of the story. With health care and social assistance expected to add more than 540,000 jobs by 2035, practices are competing for talent, redesigning roles and investing in technology and premises that help them attract staff and operate more efficiently.
Property also remains central. Well-located medical, dental, veterinary and allied health premises are supported by population growth, essential service demand and the need for modern, accessible facilities. For specialised health brokers, this opens natural conversations around owner-occupied property, fit-outs, equipment, expansion funding and long-term business planning.
Backing practitioners with a clearer path
The challenge is that healthcare lending is rarely one-size-fits-all. Industry insight highlights several specialist features that matter in assessment, including goodwill, professional income, borrower experience, practice cash flow, security quality, fit-out funding and the need to understand the operating model behind the transaction.
That is why clarity matters. When a healthcare client wants to expand, buy premises, invest in equipment or buy into a practice, brokers need to know early whether the deal has a pathway, what information is required and how to keep it moving.
BOQ Specialist’s updated healthcare lending approach is designed to give brokers a clearer and more practical pathway for quality healthcare customers, while still maintaining sound credit discipline.
Supporting growth across the practice lifecycle
Our policy supports lending across the practice lifecycle, from start-up and buy-in conversations through to established SME-style structures, owner-occupied commercial property, practice growth, equipment investment, goodwill lending, acquisition and succession.
That matters because healthcare clients often reach key funding moments at important transition points, a practitioner buying into a practice, a clinic adding another site, a dentist upgrading equipment, a vet expanding into larger premises, or a specialist practice preparing for succession.
Growth with confidence
For specialised health brokers, the opportunity is significant because healthcare clients are still investing, but they need advice that connects finance to the realities of running a healthcare business. That means understanding cash flow, professional income, goodwill, equipment cycles, lease terms, premises strategy and the borrower’s growth plan.
The best conversations will not start with rate. They will start with what the practitioner is trying to build, what stage the business is at, and what finance structure gives them room to grow without adding unnecessary complexity.
It also gives brokers a reason to re-engage clients who may now be considering growth, succession, acquisition, refinancing, new equipment, digital investment or a property purchase.
Looking ahead
The healthcare sector will keep changing. Demand is growing, costs are rising, technology is reshaping delivery, and practitioners are having to think more commercially about how they build resilient, efficient and patient-centred businesses.
That is where brokers can add real value. With better sector knowledge, clearer lending guidance and earlier conversations, they can help healthcare professionals invest, grow and continue delivering essential services to their communities.
BOQ Specialist - a division of Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian Credit Licence no. 244616.
