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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 2013 – 30 June 2014.
This report presents the results of phase one of the project to develop Australian Refined Diagnosis Related Groups (AR-DRG)1 Version (V) 8.0. This phase focuses on the case complexity component of the classification that has not been reviewed for many years
The Pricing Framework for Australian Public Hospital Services 2014-2015 builds on the two previous Pricing Frameworks (2012-2013 Pricing Framework and 2013-2014 Pricing Framework). For simplicity, where IHPA reaffirmed a previous principle, the supporting argument was not restated in this paper.
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 2014-15 National Efficient Cost Determination (Determination):
(a) to determine the national efficient cost for health care services provided by public hospitals where the services are block funded;
This document was produced as an accompaniment to the NEP14 and NEC14 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 2014, and provides guidance to hospitals, Local Health Networks (LHN) and state and territory health authorities on how to apply these to hospital activity.