Independent Hospitals Pricing Authority
Nurse holding a needle

The establishment of the Independent Hospital Pricing Authority (IHPA) is a key element of the COAG National Health Reform Agreement (NHRA) which was signed by all governments on 2 August 2011.


The Independent Hospital Pricing Authority (IHPA) is an independent government agency established by the Commonwealth as part of the National Health Reform Act 2011. IHPA was established to contribute to significant reforms to improve Australian public hospitals. A major component of these reforms is the implementation of national Activity Based Funding (ABF) for Australian public hospitals. The implementation of ABF provides incentives for efficiency and increases transparency in the delivery and funding of public hospital services across Australia.

IHPA's primary function is to calculate and deliver an annual National Efficient Price (NEP). The NEP is a major determinant of the level of Australian Government funding for public hospital services and provides a price signal or benchmark for the efficient cost of providing public hospital services. We undertake several major areas of work designed to inform the annual determination of the NEP, including ongoing consultation with all Australian health departments, expert advisory committees and key stakeholders.

We work in partnership with the National Health Performance Authority and the Australian Commission on Safety and Quality in Health Care to ensure that pricing, quality and performance measures for public hospitals are complementary and facilitate a strong national framework for the delivery of public hospital services.

Our vision is for all Australians to have access to a sustainable, locally controlled health system that funds public hospital services using activity based funding, where practicable, based on a national efficient price.Top of page

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