Tier 2 Non-Admitted Services Classification development

Prior to the implementation of activity based funding for Australian public hospital services, there was no national classification used for funding non-admitted services.

The current Tier 2 Non-Admitted Services Classification (Tier 2) was developed based on the National Hospital Cost Data Collection (NHCDC) list of clinics. In 1997, an Outpatient Costing and Classification Study was commissioned by the Commonwealth. This study resulted in the Developmental Ambulatory Classification System (DACS). While DACS was never implemented, the list of clinics from the study formed the list of Tier 2 classes in the NHCDC. This data was first collected in Round 3 (1997–98) of the NHCDC and has been reported in each year since.

In 2011, the list of Tier 2 classes was updated to accommodate the increase in services that were previously provided as inpatient services now being undertaken as outpatient services. This also included a full review of the classification in response to the National Health Reform Agreement.

The aim was to develop a classification system for use with non-admitted outpatient services for activity based funding purposes. The outcome of the review was the publication of Version 1.0 of the Tier 2 Outpatient Clinic Definitions. The table below details the names of the Tier 2 versions, the corresponding National Efficient Price (NEP) and number of classes for each version.

Name Version NEP Number of classes Review type
Tier 2 Outpatient Clinic Definitions 1.0   107  
Tier 2 Outpatient Clinic Definitions 1.2 NEP12 107 Minor
Tier 2 Non-Admitted Services Classification 2.0 NEP13 136 Major
Tier 2 Non-Admitted Services Classification 3.0 NEP14 137 Major
Tier 2 Non-Admitted Services Classification 4.0 NEP15 138 Major
Tier 2 Non-Admitted Services Classification 4.1 NEP16 140  
Tier 2 Non-Admitted Services Classification 5.0 NEP18 142  
Tier 2 Non-Admitted Services Classification 6.0 Supplementary to NEP19 and NEP20 to incorporate updates relating to COVID-19 145  
Tier 2 Non-Admitted Services Classification 7.0 NEP21 167  
Tier 2 Non-Admitted Services Classification 8.0 NEP23 171  
Tier 2 Non-Admitted Services Classification 9.0 NEP24 173  

 

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