Thinking of Buying an Osteopathy Practice in Australia? Here Are 3 Vital Questions to Ask
The Australian chiropractic and osteopathic services industry generated $1.8 billion in revenue in 2026, with profit margins averaging 18.4%. The industry employs over 18,200 people across more than 6,700 enterprises, with osteopathy one of the fastest-growing allied health professions.
Revenue is projected to grow at 1.5% annually through 2031, reaching $1.9 billion. Growth will be supported by an ageing population, rising prevalence of musculoskeletal conditions, and higher private health insurance coverage. However, challenges include limited Medicare funding, cost-of-living pressures, and increasing practitioner numbers leading to strong competition.
1. Is the Business Financially Resilient in a Fragmented Market?
Why It Matters
Osteopathy practices operate in a highly fragmented industry dominated by sole practitioners. With most revenue reliant on out-of-pocket payments and private health insurance extras cover, financial performance is sensitive to household disposable income. Rising practitioner numbers are also putting pressure on margins.
What to Check
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Profitability – Benchmark against the industry’s strong margin of 18.4%.
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Revenue sources – Review reliance on private health insurance rebates versus Medicare-funded chronic disease plans.
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Overheads – Consider exposure to rising wages, rent, and consumable costs.
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Cash flow – Assess resilience to fluctuations in patient numbers during economic downturns.
2. Does the Practice Have a Strong Market Position?
Why It Matters
Osteopathy is growing in popularity, with services expanding to over 1.2 million claims under private health insurance in 2024–25. Practices that build strong reputations, secure referral networks, and specialise in areas like sports or geriatric care can achieve higher client loyalty and margins. Location also plays a key role, with Victoria home to the largest concentration of osteopaths.
What to Check
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Client demographics – Identify whether patients are younger, active adults or older Australians with chronic musculoskeletal conditions.
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Geographic strength – Assess location advantages, particularly in VIC and NSW where demand is highest.
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Reputation – Review referrals from GPs, allied health providers, and patient reviews.
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Specialisation – Consider whether the practice offers niche services such as paediatric, geriatric, or sports-related osteopathy.
3. Is the Practice Aligned with Industry Trends and Regulation?
Why It Matters
Demand for osteopathy is rising as consumers embrace holistic and preventative care. However, regulatory frameworks under AHPRA and the Osteopathy Board of Australia impose compliance requirements. Practices that integrate technology, adopt patient-centric business models, and align with wellness trends are better positioned for growth.
What to Check
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Regulatory compliance – Confirm registration with the Osteopathy Board of Australia and adherence to professional standards.
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Technology adoption – Review use of digital diagnostic tools, patient management systems, and telehealth.
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Wellness integration – Assess positioning in holistic and preventative health programs.
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Future readiness – Consider alignment with Osteopathy Australia’s 2030 strategic plan, which advocates for broader integration into aged care and primary healthcare.
Ready to Invest in a Thriving Osteopathy Practice?
With strong profit margins, rising patient demand, and growing professional recognition, osteopathy practices represent a resilient opportunity in Australia’s allied health sector.
Success will depend on financial resilience, strong market positioning, and alignment with regulatory and consumer health trends.
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