Australia’s healthcare system is under mounting pressure, with chronic underfunding struggling to keep pace with shifting demographics.

While federal and state governments spent $175bn on healthcare (around 70 per cent of total health expenses) last financial year, and both major parties have promised $8.5bn extra for Medicare, demand continues to outstrip supply.

Increasingly, private investment is filling the gap. Driving this shift is our ageing population. The over- 65 cohort makes up 17 per cent of the population but accounts for 40 per cent of public hospital care and nearly 50 per cent of hospital bed occupancy.

By 2063, the over-55s group could nearly double, from 7.7 million to 15.2 million people. As chronic conditions like cancer become more prevalent, demand for specialised healthcare services is intensifying.

South East Queensland – particularly the Gold Coast – is a prime location for healthcare property investment, due to its strong population growth and ageing demographics. The city exemplifies the challenges of rapid population growth and the need for innovative healthcare solutions.

However, government investment has struggled to keep pace, leading to capacity constraints in public healthcare.

This has driven the rise of alternative healthcare models, such as specialist day hospitals, which alleviate pressure on major hospitals while ensuring critical treatment access.

Natgen’s Investment Trust SP24, is an example. Its key asset, Icon Cancer Centre provides high-quality cancer treatment in a dedicated setting, improving patient outcomes and freeing up resources in overstretched public hospitals. This shows how private capital can deliver real solutions to meet growing healthcare needs.

With government budgets stretched thin, public-private partnerships and private capital investment are becoming essential to delivering healthcare infrastructure. Medical property assets such as specialist medical centres, private hospitals and diagnostic facilities are attracting strong interest from investors due to their stable, long-term income streams and resilience. Healthcare is an area where ethical investment aligns with strong financial fundamentals. Private capital is ready to support essential healthcare infrastructure, while delivering sustainable returns to investors.

Steven Goakes is the managing director of Natgen.