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The Independent Hospital Pricing Authority’s (IHPA) primary function is to calculate and deliver an annual national efficient price (NEP). The NEP is a major determinant of the level of Australian Government funding for public hospital services and provides a price signal or benchmark for the efficient cost of providing public hospital services.
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).
The Pricing Framework 2016-17 builds on the Pricing Frameworks from previous years (2012-13, 2013-14, 2014-15 and 2015-16). For simplicity, where IHPA has reaffirmed a previous principle, the supporting argument has not been restated in this year’s paper.
The 2015-16 Pricing Framework builds on the three previous Pricing Frameworks (2012-13 Pricing Framework, 2013-14 Pricing Framework and 2014-15 Pricing Framework). For simplicity, where IHPA has reaffirmed a previous principle, the supporting argument has not been restated in this year’s paper. IHPA issued the Pricing Framework prior to releasing the NEP and NEC Determinations, which were made publicly available in March 2015.
This Discussion Paper develops the elements of a Draft Pricing Framework for use by the Independent Hospital Pricing Authority in the national implementation of activity based funding (ABF) for Australian public hospitals.