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The Pricing Framework 2018-19 builds on the six Pricing Frameworks from previous years. The Pricing Framework is the key strategic document underpinning the National Efficient Price (NEP) and National Efficient Cost (NEC) Determinations for the financial year 2018-19.
Bundled pricing is where a single price covers a full package of care over a defined period of time, spanning multiple events and settings of care. The intention is for resources and funding to be easier for hospitals to manage, to allow financial flexibility to encourage improved models of care or greater standardisation of evidence-based care, and drive better service delivery in the long run which should lead to better patient outcomes and lower costs.
The Pricing Framework 2017-18 builds on the Pricing Frameworks from previous years (2012-13, 2013-14, 2014-15, 2015-16, 2016-17). For simplicity, where IHPA has reaffirmed a previous principle, the supporting argument has not been restated in this year’s paper.
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.