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This report is prepared in accordance with the Requirements for Annual Reports, as issued by the Department of the Prime Minister and Cabinet and approved by the Joint Committee of Public Accountants Audit under sub sections 63(2) and 70(2) of the Public Service Act 1999. The report is a formal accountability document that details the activities of the Independent Hospital Pricing Authority (IHPA) from 1 July 2011 – 30 June 2012.
This document was produced as an accompaniment to the NEP13 and NEC13 Determinations. It provides the technical specifications for how IHPA developed the ABF models for the service streams to be funded on this basis from 1 July 2012, and provides guidance to hospitals, Local Health Networks (LHN) and state and territory health authorities on how to apply these to hospital activity.
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 (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 Determination 2012-2013 (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;
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.