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IHPA releases Pricing Framework for Australian Public Hospital Services 2018-19

21 November 2017

The Independent Hospital Pricing Authority (IHPA) today released its Pricing Framework for Australian Public Hospital Services 2018-19.

The Pricing Framework outlines the major policy decisions that underpin the National Efficient Price (NEP) and National Efficient Cost (NEC) Determinations.

The release of the Pricing Framework for Australian Public Hospital Services 2018-19 follows extensive consultation with all jurisdictions and the wider public, and demonstrates IHPA’s commitment to transparency and accountability, Shane Solomon, Chair, Pricing Authority explained.

“This year’s Pricing Framework reflects the extensive work IHPA (as it was then known) has undertaken to develop a model for pricing and funding for safety and quality to facilitate improvement in patient outcomes. This includes the development of a funding model for hospital acquired complications (a complication that occurs during a hospital stay) from 1 July 2018.”

“Work is continuing to develop a pricing or funding approach for avoidable readmissions and IHPA will conduct a comprehensive consultation process with stakeholders on a proposed model during 2018,” said Mr Solomon.

“For the first time, this year’s Pricing Framework explores options for innovative funding models. There is strong support for IHPA to undertake exploratory work to understand how value based care and chronic disease funding models could be developed in Australia,” Mr Solomon concluded.

The Pricing Framework for Australian Public Hospital Services 2018-19 is available on the IHPA website.

The NEP and NEC Determinations for 2018-19 will be published in March 2018.

About IHPA

IHPA is an independent government agency established under the Commonwealth legislation on 15 December 2011 as part of the National Health Reform Agreement (NHRA), reached by the Council of Australian Governments (COAG) in August 2011.

The NHRA sets out the intention of the Australian Government and state and territory governments to work in partnership to improve health outcomes for all Australians.

IHPA is charged with implementing national Activity Based Funding (ABF) by determining the National Efficient Price and the National Efficient Cost for public hospital services each year. ABF improves transparency, and strengthens incentives for efficiency in the delivery of public hospital services.

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