Despite Governments at various levels in Australia attempting to force
restraint by limiting financial resources, modern medicine and commun
ity expectations will continue to place demands on health services. Th
e principal illnesses confronting society are unlikely to change, with
conditions such as cancer, cardiovascular disease and diabetes remain
ing at their current prevalence. Early and more sophisticated detectio
n and monitoring of these diseases will be required, with concomitant
increases in costs. Overriding this in Australia is the increase in th
e age of the population, which will also have a major impact on health
costs. This article examines the effect, on pathology services, of ch
anges occurring within the health system in Australia, especially the
impact on public hospital pathology. (C) 1997 Elsevier Science B.V.