What we do
The Independent Health and Aged Care Pricing Authority's (IHACPA) primary function has been to enable activity based funding for Australian public hospital services.
IHACPA does this by delivering an annual national efficient price (NEP) and national efficient cost (NEC). The NEP and NEC are a major determinant of the level of Commonwealth Government activity based funding (ABF) and block funding for public hospital services and aged care service providers, and provide a price signal or benchmark for the efficient cost of providing those services.
We undertake several major areas of work designed to inform the annual determination of the NEP, including ongoing consultation with all Australian health departments, expert advisory committees and key stakeholders.
IHACPA is also responsible for developing national classifications for healthcare and other services delivered by public hospitals, and as required, resolving cost-shifting and cross-border disputes.
We work in partnership with the Australian Commission on Safety and Quality in Health Care to ensure that pricing, the quality of care provided and performance measures for public hospitals are complementary of the healthcare sector more broadly to facilitate a strong national framework for the delivery of public hospital services.
On 12 August 2022 amendments to the National Health Reform Act 2011 came into effect changing IHACPA’s name from the Independent Hospital Pricing Authority (IHPA) and expanding its role to include the provision of costing and pricing advice on aged care to the Commonwealth Government.