National Efficient Price Determination 2024–25

Date published: 19 March 2024

The Independent Health and Aged Care Pricing Authority (IHACPA) was established under the National Health Reform Act 2011 (the NHR Act) and by virtue of section 131(1) of the NHR Act is invested with the following functions relevant to this National Efficient Price Determination 2024–25: 

  • to determine the national efficient price for health care services provided by public hospitals where the services are funded on an activity basis 
  • to determine the efficient cost for health care services provided by public hospitals where the services are block funded 
  • to develop and specify classification systems for health care and other services provided by public hospitals 
  • to determine adjustments to the national efficient price to reflect legitimate and unavoidable variations in the costs of delivering health care services 
  • except where otherwise agreed between the Commonwealth and a state or territory – to determine the public hospital functions that are to be funded in the state or territory by the Commonwealth 
  • to publish a report setting out the national efficient price for the coming year and any other information that would support the efficient funding of public hospitals. 

This determination is used by the Administrator of the National Health Funding Pool to determine the amount of Australian Government funding provided to local hospital networks. 

For 2024–25, IHACPA has developed shadow price weights for the Australian Mental Health Care Classification Version 1.0 end-classes for community mental health care services. 

National weighted activity unit (NWAU) calculators are available to assist in applying the National Efficient Price Determination 2024–25 price weights and adjustments. 

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