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Consultation and review of the AR-DRG and ICD-10-AM/ACHI/ACS Classification Systems

Date published: 31 August 2020

The development cycle of the admitted care classifications was last reviewed in 2009. Since that time the landscape has changed significantly with the National Health Reform Agreement in 2011 and the introduction of activity based funding nationally. The recent review found the cycle was working well but found areas of potential refinement.

The goal of the Consultation and review of the AR-DRG and ICD-10-AM/ACHI/ACS Classification Systems report was to review the end-to-end development processes, implementation arrangements and user needs in developing and implementing updates to the following classifications, now and into the future:

  • International Statistical Classification of Diseases and Related Health Problems, Tenth Revision, Australian Modification (ICD-10-AM)
  • Australian Classification of Health Interventions (ACHI)
  • Australian Coding Standards (ACS); collectively known as ICD-10-AM/ACHI/ACS
  • Australian Refined Diagnosis Related Groups (AR-DRGs).

The consultation engaged key technical groups involved in the development cycle of the classifications along with other jurisdictional representatives and stakeholders who use the classifications. The Review outlines the findings and opportunities to enhance the processes involved in the AR-DRG and ICD-10-AM/ACHI/ACS development cycles, including:

  • Extending the development cycle timing – ensuring the processes and timelines work for all stakeholders and alleviate areas of burden in implementation
  • Embedding principles to focus the development approach – creating robust development and priority-setting principles to respond to Australian health system needs
  • Streamlining clinical and technical input to the classifications – efficient and strategic use of stakeholders in the development cycle
  • Enhancing education materials and other support for implementation – to better support the implementation and application of the classifications.

IHPA has begun to explore and implement changes in response to the opportunities identified.

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