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A jurisdiction may request the Independent Hospital Pricing Authority (IHPA) to consider any legitimate and unavoidable costs in the delivery of public hospital services. The purpose of this Framework is to outline the process by which IHPA will assess submissions from jurisdictions on legitimate and unavoidable cost variations and determine whether adjustments to the national efficient price are warranted.
This Framework outlines the processes to investigate cross-border and cost-shifting disputes following a request by a health minister to ensure the timely, equitable and transparent management of these disputes.
The Pricing Framework for Australian Public Hospital Services 2021–22 (the Pricing Framework) is the key strategic document underpinning the national efficient price (NEP) and national efficient cost (NEC) Determinations for the financial year 2021–22 (NEP21 and NEC21 respectively).
As prescribed in Section 225 of the National Health Reform Act 2011 (the Act), the objectives of the IHPA Work Program are to:
- set out IHPA’s work program for the coming year; and
- invite interested persons (including states and territories) to make submissions to the Pricing Authority about the work program up to 30 days after publication.
An extract of Section 225 of the Act is attached at Appendix 1.