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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).
In June 2012, the Independent Hospital Pricing Authority (IHPA) published the National Efficient Price Determination for 2012-13, and the Pricing Framework for Australian Public Hospital Services 2012- 2013 that underpinned the determination. In September 2012, IHPA released a consultation paper on key issues that IHPA was considering in the preparation of the Pricing Framework for Australian Public Hospital Services 2013-2014.
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.
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.