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This document provides the technical specifications for how the Independent Hospital Pricing Authority (IHPA) developed the activity based funding models for the service streams to be funded for the National Efficient Price and the National Efficient Cost Determinations 2020–21.
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 (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.