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Assessment of New Health Technologies 2021–22

Accounting for new health technologies

The Independent Hospital Pricing Authority’s (IHPA) core function is the pricing of public hospital services. IHPA’s Pricing Guidelines recognise that the 'Pricing of public hospital services should respond in a timely way to introduction of evidence-based, effective new technology and innovations in the models of care that improve patient outcomes'.

IHPA has developed the Impact of New Health Technology Framework (the Framework) to facilitate the review, assessment and incorporation of new health technology into the national pricing model.

Under the Framework, IHPA monitors the potential impact of new health technologies on models of care that have not yet been incorporated into the classification and costing of public hospital services.

Where a technology is not accounted for in the national pricing model, IHPA may refer the technology for priority classification development where it can be demonstrated that:

  • The technology is in use in Australian public hospitals or the expected uptake is substantial enough to warrant classification development.
  • The difference between the price weight for the most frequently mapped Diagnosis Related Group (DRG) and the technology’s cost estimate is significant.
  • The total cost of the mapped DRGs and the number of patients is material.
  • The technology can feasibly be accounted for through classification development. Note that diagnostic tests and pharmaceuticals will generally be excluded from consideration as they cannot be accounted for without imposing an additional reporting burden on jurisdictions.

Submissions under the Framework 2021–22

The annual process under the Framework involves IHPA reviewing reports of new health technologies provided by government advisory groups and submissions provided by other interested stakeholders, such as health technology companies.

IHPA invited all interested parties to partake in the submission process as part of its 2021–22 review of new health technologies under the Framework.

The submission period closed at 5pm AEST on Friday 27 August 2021.

IHPA’s final assessment of the technologies to refer for classification development will occur by May 2022. IHPA will advise applicants on the outcome of its assessment.

If you have any questions or require assistance, please contact IHPA via email at enquiries.ihpa [at] ihpa.gov.au or by phone at +61 2 8215 1100.