Audiology market review: Findings and next steps
Earlier this year, ACC commissioned an independent review of the audiology market, undertaken by Sapere. We’re now sharing the findings with you.
The review was undertaken to build our understanding of the New Zealand audiology market and explore opportunities to improve how audiology services and hearing aids are commissioned.
What the review set out to do
The review was designed to provide a clear, evidence-based picture of the audiology sector, including:
- the New Zealand audiology market, access to services and the provider landscape
- international funding and commissioning models
- hearing aid products, pricing and procurement
- the costs and delivery of audiology assessments, fittings and associated services
- disparities in access to audiology services and hearing aids.
More complex services, such as cochlear implants, were outside the scope of the review.
What the review told us
Sapere’s analysis drew on a range of sources, including ACC claims data, published research, sector interviews and a survey of New Zealand Audiological Society members.
Key findings
- The audiology market is changing, driven by an ageing population, technological developments, evolving service models and increasing demand for hearing services.
- Audiology services have grown in New Zealand, but access remains uneven. Rural and remote communities can experience lower service availability, and barriers are greater for some population groups.
- The New Zealand audiology market is concentrated, with a small number of large, vertically integrated providers delivering a significant share of services.
- ACC-funded audiology service volumes have increased over the past decade, with hearing aid fitting services, replacement of hearing aids and new hearing aids accounting for a significant proportion of accepted claim costs.
- Hearing aid prices in New Zealand broadly align with published international prices, particularly in the mid-range and premium segments.
- A range of factors, including pricing, commercial drivers, client co-payments, administrative processes and information available to clients, may influence access, choice and the long-term sustainability of funding.
- There is no single internationally recognised commissioning model for audiology services and hearing aids. Different countries use a range of more active management approaches to balance access, quality, client choice and cost, including approved device lists, maximum fee schedules, service contracts, bundled payments and central procurement.
These findings provide an independent view of the audiology market and highlight opportunities to improve how audiology services and hearing aids could be commissioned in the future.
What happens next
ACC’s focus is supporting people with injury-related hearing loss to access the right support for their needs, while ensuring the Accident Compensation Scheme remains sustainable for future generations.
ACC is working with Disability Support Services (DSS), Pharmac and New Zealand Government Procurement (NZGP) to explore the joint purchasing of hearing aids. The aim is to develop a collaborative contract under the Government Procurement Rules, supporting a more efficient, cost-effective, joined-up purchasing approach.
This cross-government initiative is in its early planning stages, with NZGP and Pharmac leading the procurement design and planning.
The Audiology market review and advice provided by ACC’s External Audiology Reference Group will help inform the cross-government approach and contracting arrangements.
We’ll continue engaging with the audiology sector as this work progresses. No decisions have been made about any wider changes to audiology commissioning or funding arrangements.
Thank you to the audiology providers, professional and sector organisations, manufacturers, funders, client representatives and other stakeholders who contributed their time, information and insights.
Your participation has enabled the review to reflect a wide range of experiences and has provided an important foundation for the cross-government work and future engagement.