Pricing Framework for Australian Public Hospital Services 2026–27 open for public consultation

Individuals and organisations can submit their feedback in the next 30 days. The consultation focuses on the approach to developing the activity based funding system and block funding arrangements for Australian public hospital services.

The Pricing Framework is revised annually to reflect changes to health service delivery. It outlines the policy decisions that underpin the annual national efficient price and national efficient cost (NEC) determinations. These determinations play a crucial role in calculating the Commonwealth funding contribution to public hospitals for the next financial year.

Feedback from stakeholders ensures that the Pricing Framework is not only transparent and evidence-based but also reflective of the broader impacts on health care service delivery across Australia, including rural and remote areas.

IHACPA’s Pricing Authority Chair Mr David Tune AO PSM said, 'We continue to work closely with a diverse mix of stakeholders to understand perspectives and factors that impact healthcare costs.'

This year’s consultation paper seeks feedback on key policy areas including:

• pricing admitted acute care using Australian Refined Diagnosis Related Groups 
  Version 12.0
• reviewing the block funding criteria that underpin the NEC
• reviewing pricing adjustments, including for intensive care unit patients, First Nations peoples and individuals residing in rural and remote areas of Australia
• reviewing risk factors for inclusion in the hospital acquired complications and avoidable hospital readmissions risk adjustment models.

IHACPA is encouraging feedback from policy makers, Australian governments, public hospitals, local hospital networks and industry and consumer groups. 

The public consultation is open until 5pm AEST Friday 13 June 2025.

To view the consultation paper or to make a submission, visit IHACPA’s Engagement Hub.

For media enquiries, contact:
communications.ihacpa@ihacpa.gov.au