Pricing Framework NEP and NEC Determinations 2022-23 infographic

Date published: 23 March 2022

Each financial year, IHPA releases the annual national efficient price and national efficient cost to determine the Commonwealth Government’s contribution to public hospitals.

The funding is then distributed by the Administrator of National Health Funding Pool.

The national efficient price (NEP) underpins the implementation of activity based funding. The NEP aims to determine the levels of Commonwealth funding for public hospital services and to provide a cost benchmark.

The national efficient cost (NEC) is based on a fixed‑plus‑variable structure, which was introduced in consultation with states and territories in 2020–21.

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