Study reveals surprising ownership change behind Australia’s imaging clinics

Many Australians are familiar with routine medical check-ups that often begin with diagnostic scans like X-rays, ultrasounds, or MRIs. These imaging tests are a crucial first step in identifying health issues, and most people assume their scans are conducted locally.

It’s a process that feels personal and community-focused, providing reassurance during times of uncertainty. However, a new national audit has uncovered a surprising truth about how these scans are managed nationwide.

More than half of Australia’s diagnostic imaging clinics are now owned by just a handful of large, for-profit corporations. 

This shift raises some big questions about the future of healthcare access, affordability, and quality for everyday Australians, especially those who rely on Medicare and value a fair go.

The research, led by Dr Sean Docking from Monash University’s School of Public Health and Preventive Medicine, found that eight major corporations now control 51 per cent of all diagnostic imaging clinics nationwide. 

In some states and territories—like South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory—a single company controls 30 per cent or more of non-government imaging services.

Diagnostic imaging is big business in Australia, with the sector valued at a whopping $6 billion. It’s no wonder private equity firms and corporate investors are keen to get a slice. 

However, as Dr Docking pointed out, this corporatisation trend isn’t just about business—it has real consequences for patients.

What does this mean for you?

Diagnostic imaging services—X-rays, ultrasounds, and MRIs—are essential for early diagnosis and effective treatment. 

For many people, especially as we age, these scans are a routine part of managing our health. However, patient care could take a back seat when profit becomes the main driver.

The study, published in the Australian Health Review, highlights several concerns:

• Equity of access: Will clinics in less profitable areas be neglected or closed, making it harder for people in rural or regional communities to get the needed scans?
• Cost to patients and Medicare: Overseas evidence suggests corporate ownership can lead to higher healthcare costs. If clinics are focused on maximising profits, could we see more out-of-pocket expenses or unnecessary scans being recommended? 
• Quality of care: When financial goals are front and centre, there’s a risk that the quality of care could suffer. Will clinics be pressured to cut corners or rush appointments to boost profits?

The study also found that just four companies dominate the lucrative MRI market, controlling over half of all clinics offering Medicare-rebatable MRI services nationwide. 

These companies generate most of their profits from taxpayer-funded Medicare rebates, making it crucial for governments to monitor how these funds are used.

Dr Docking warned that while private investment can bring some benefits, like new technology and improved efficiency, it’s essential to ensure that corporate interests don’t override patients’ needs. 

‘This research lays a critical foundation for future investigations into how corporatisation is shaping the delivery and value of healthcare in Australia,’ he said.

Australia isn’t alone in facing these challenges. In countries like the United States and the United Kingdom, the corporatisation of healthcare has led to higher costs, more aggressive marketing of unnecessary procedures, and sometimes even reduced access for those who need care most. 

With the sale of Australia’s largest imaging provider, I-Med, reportedly fetching $3 billion, it’s clear that the stakes are high. Governments and regulators need to ensure that:

• Medicare funds are used responsibly and transparently.
• Clinics are held accountable for the quality and value of care they provide.
• Access to essential imaging services remains fair and equitable, no matter where you live.

Have you noticed changes in your local imaging clinic? Have you been hit with unexpected costs or felt rushed through your appointment? We want to hear from you! Share your experiences in the comments below.

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