Key Highlights

  • A model by Value-Based Access estimates public hospitals would need about 29,427 fewer colonoscopies a year, a 36% reduction for the modelled group of 82,662 people.
  • The model estimates $93.1 million of avoided hospital costs against $20.7 million of test costs, a net saving of $72.4 million a year.
  • The study was paid for by Rhythm, results are modelled estimates rather than measured outcomes, and ColoSTAT is not currently funded by Medicare.

Rhythm Biosciences Ltd (ASX:RHY) announced on 7 October 2026 the results of an independent health economic study of ColoSTAT, its blood test for bowel cancer. The study was carried out by Value-Based Access Pty Ltd, a Sydney healthcare consultancy, and was paid for by Rhythm.

What the study modelled

The study modelled about 83,000 people a year who see a GP with possible bowel cancer symptoms, have not done the national stool test and would currently be referred directly to a public hospital for a colonoscopy. It compared that pathway with a GP first ordering a ColoSTAT blood test. A positive result sends the patient for a colonoscopy, a negative result with symptoms settling means no referral, and a negative result with continuing symptoms still leads to a colonoscopy as a safety net.

Results

The model assumed a cost of $250 per ColoSTAT test against $3,163 for a public hospital colonoscopy. For 82,662 people, it estimated 29,427 colonoscopies avoided, a 36% reduction, and public hospital costs avoided of $93.1 million. After the $20.7 million cost of the blood tests, the net saving in public hospital activity was $72.4 million a year, or about $4.50 of hospital costs avoided for every $1 spent on testing. The release states that these are estimates from a model and not measured results.

Scope and limits

The study covered public hospitals only. About two-thirds of colonoscopies in Australia are performed in private hospitals, which the study did not examine, and Rhythm believes the benefit there could be larger, but it still has to assess that. The company also notes that public waiting lists can be four to six months and that fewer than half of people sent the national stool test use it.

Reimbursement pathway

ColoSTAT is not currently funded by Medicare. Rhythm intends to use the study, with other evidence and future studies, to support an application to the Medical Services Advisory Committee (MSAC) for Medicare reimbursement, and will update the market on material developments. It will also share the study with GPs, specialists, hospitals and health insurers. The announcement does not state when an application would be lodged or whether it would succeed.

About ColoSTAT

Rhythm describes ColoSTAT as a simple blood-based test that measures five specific protein biomarkers indicating the likelihood of colorectal cancer, intended for individuals with symptoms associated with the disease. It is based on research from Australia's CSIRO and is Patent protected internationally. The company notes colorectal cancer is the second leading cause of cancer deaths globally and can often be cured if diagnosed early.

Public health context in the release

Rhythm notes the free national screening program uses a home stool test, but fewer than half of the people sent one use it. People who see a GP with bowel symptoms are usually sent for a colonoscopy, and public waiting lists can run four to six months, yet most people who have a colonoscopy do not have bowel cancer. The company also describes its geneType platform, which combines clinical, family history and genetic data into risk assessments for several diseases.