IHACPA's key role is to determine the annual national efficient price and national efficient cost for Australian public hospital services.
In addition to the agency's existing functions in the pricing of public hospital services, the newly expanded agency will take on the role of providing advice on the costing and pricing of aged care services to the Commonwealth Minister for Health and Aged Care.
IHACPA develops cost and pricing models, as well as a range of supporting documents and tools that inform the NEP and NEC Determinations and outline how they are calculated each year. The cost model is then converted to the pricing model.
Pricing Framework for Australian Public Hospital Services
The Pricing Framework for Australian Public Hospital Services outlines the principles, scope and methodology adopted by IHACPA to determine the national efficient price and the national efficient cost for Australian public hospital services for the specific financial year.
Safety and quality
IHACPA is required to continue reforms integrating safety and quality into the pricing and funding of public hospital services under the National Health Reform Agreement 2020-25
National Efficient Price Determination
IHACPA publishes an annual National Efficient Price Determination for public hospital services for each coming financial year that underpins activity based funding across Australia for Commonwealth-funded public hospital services.
National Efficient Cost Determination
IHACPA publishes an annual National Efficient Cost Determination for public hospital services for each coming financial year that underpins block funding for services that are not suitable for activity based funding, such as small rural hospitals.
National Pricing Model Technical Specifications
Technical specifications for how IHACPA develops the activity based funding models and provides guidance to hospitals, local health networks and state and territory health authorities on how to apply these to hospital activity.
National weighted activity unit (NWAU) calculators as described in the National Pricing Model Technical Specification have been developed to assist in applying the annual national efficient price weights and adjustments.