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Pricing Frameworks

The Pricing Framework for Australian Public Hospital Services (the Pricing Framework) is updated annually. It outlines the principles, scope and methodology adopted by Independent Health and Aged Care Pricing Authority (IHACPA) to determine the national efficient price (NEP) and the national efficient cost (NEC) for Australian public hospital services for the specific financial year.

Development of the Pricing Framework was informed by stakeholder feedback to the Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2022-23 (the Consultation Paper). The submissions received, as well as a Consultation Report detailing how IHACPA reached its decisions for 2022-23, are available on the Consultation Paper page.

The key policy decisions outlined in the Pricing Framework for 2022-23 relate to:

  • the response to the COVID-19 pandemic, including IHACPA’s approach to assessing and accounting for the short and long-term impacts on public hospital activity, costs and models of care
  • classification development, such as pricing admitted mental health care services and the release of new admitted acute care classifications, accompanied by the introduction of interactive and responsive education material
  • forthcoming work to evaluate and further develop safety and quality reforms, including the exploration of options to reduce avoidable and preventable hospitalisations
  • supporting jurisdictions to pilot innovative models of care that have the potential to create better incentives for improved continuity of care.

 

IHACPA consults with all stakeholders including the general public prior to finalising the Pricing Framework for each year. The Pricing Framework emphasises IHACPA’s commitment to transparency and accountability in how IHACPA undertakes its work.

Key publications

Learn more about activity based funding in the health care sector

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Learn more about activity based funding in the aged care sector

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