Activity Based Funding
In early 2010 the Australian Government released the proposal to reform the Australian health system, entitled "A National Health and Hospitals Network for Australia's Future". A key feature of this reform is the national introduction of Activity Based Funding (ABF).
The Australian refined diagnosis-related groups (AR-DRG) classification will be used to define and count acute admitted patient ‘activity’, other ABF classifications are being developed by the Independent Hospital Pricing Authority (IHPA) for the purposes of classifying other ‘activities’.
IHPA will play a pivotal role in ABF through the key functions, outlined in the National Health Reform Agreement (NHRA). These functions are outlined in section B3 of the NHRA:
National Health Reform Agreement
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Impact of New Health Technology FrameworkIHPA has developed an Impact of New Health Technology Framework. The objective of the Framework is to outline the process by which IHPA, through its Clinical Advisory Committee will monitor and review the impact of new technologies on the existing classifications in order to accurately account for it in the pricing of public hospital services.
IHPA seeks interest for an evaluation of national Activity Based Funding in Australian public hospitals - Industry briefingThe Independent Hospital Pricing Authority (IHPA) is seeking public tenders to provide an independent evaluation of the national implementation of Activity Based Funding (ABF) for in-scope Australian public hospital services.
The evaluation would be expected to assess the impact of the new ABF arrangements on the management performance of the public hospital system in turning budget resources into the delivery of high quality and timely hospital services accessible to all Australians, such as (but not limited to):
- service delivery costs
- activity levels
- equity of access, especially by locality and socio-economic groups;
- hospital funding levels
- length of stay
- morbidity and co-morbidity rates
- quality of care indicators
- identification of possible expected and unexpected incentives
- integration of care
- management culture
- rural hospitals.
The industry briefing took place at 3 pm on Wednesday 14 August at the IHPA offices, Level 6, 1 Oxford Street, Sydney.
A background briefing is provide below for those who could not attend.
Page currency, Latest update: 16 October, 2013