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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.
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.
The Independent Hospital 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 2015-16 National Efficient Cost Determination:
Governments agreed to establish the Independent Hospital Pricing Authority (the IHPA) to provide independent advice about the efficient cost of public hospital services. Much of this advice will be evidence‐ based, drawing on technical knowledge and expertise about the classification, costing and funding of public hospital services. But, the IHPA must also balance a range of national policy objectives including improving the efficiency and accessibility of public hospital services.
The Independent Hospital Pricing Authority (IHPA) has commissioned the development of a comprehensive Pricing Framework for use in the implementation of activity based funding (ABF) for Australian public hospitals. This report is a short summary of the implementation options, together with selected consultation questions.