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The Independent Hospital Pricing Authority (IHPA) is a Corporate Commonwealth Entity under the Public Governance, Performance and Accountability Act 2013.
IHPA was established under the National Health Reform Act 2011, giving effect to the National Health Reform Agreement signed by the Australian Government and all states and territories in August 2011.
IHPA works in four priority areas:
- Perform IHPA pricing functions
- Refine and develop hospital classification systems
- Refine and improve hospital costing
- Develop hospital data requirements and collect data.
The Chief Executive Officer is responsible for the day‑to‑day management of IHPA and its staff.
Eight teams within the following two sections support the core activities of IHPA:
- Policy and Classification
- Data Analytics
The team develops activity based funding (ABF) policy across IHPA including matters relating to the Pricing Framework for Australian Public Hospital Services, the National Efficient Price and the National Efficient Cost Determinations.
The Data Acquisition team works with states and territories to develop appropriate data specifications, and to acquire, validate and maintain data in the IHPA information technology environment. The team provides analytical support to the various teams in the ABF branch.
The Classification teams work with clinical, technical and jurisdictional stakeholders to develop and maintain the clinical classifications, coding standards and business rules associated with the implementation of a nationally consistent ABF framework for public hospital services.
The work of the team covers six work streams:
- Admitted acute care
- Non-admitted care
- Subacute and non-acute care
- Emergency care
- Mental health care
- Teaching, training and research.
The Hospital Costing team works with stakeholders to coordinate the collection, validation, analysis and reporting of the National Hospital Cost Data Collection (NHCDC), in conjunction with states and territories and private hospitals. To ensure the NHCDC can continue to be a well-informed, evidence-based data collection, the Hospital Costing team also conduct specific costing studies.
The Pricing team develops the statistical models that underpin IHPA’s determination of the National Efficient Price and the National Efficient Cost. It does this by developing costing models that best explain the expenditure of Local Hospital Networks (LHNs) nationally, and applying the policies contained within IHPA’s Pricing Framework for Australian Public Hospital Services.
The Information Infrastructure team manages IHPA’s computing resources used to deliver the National Efficient Price and National Efficient Cost, and provides support for technology-based projects at IHPA.
The Office of the CEO supports the CEO and IHPA in all corporate support services. These include secretariat services, ministerial, government and parliamentary matters, internal and external communications, and stakeholder engagement.