National Efficient Price Determination 2015-16

The Independent Hospital Pricing Authority (Pricing Authority) is established under the National Health Reform Act 2011 (Cth) (the Act), and by virtue of section 131(1) of the Act is invested with the following functions relevant to this National Efficient Price (NEP) Determination 2015 (Determination):

(a) to determine the national efficient price for health care services provided by public hospitals where the services are funded on an activity basis;

(b) to determine the national efficient cost for health care services provided by public hospitals where the services are block funded;

(c) to develop and specify classification systems for health care and other services provided by public hospitals;

(d) to determine adjustments to the national efficient price to reflect legitimate and unavoidable variations in the costs of delivering health care services;

(e) except where otherwise agreed between the Commonwealth and a state – to determine the public hospital functions that are to be funded in the state by the Commonwealth; and 

(f) to publish a report setting out the national efficient price for the coming year and any other information that would support the efficient funding of public hospitals.
This Determination is the initial output of the performance of those functions by the Pricing Authority.