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The Pricing Framework for Australian Public Hospital Services 2020-21 (the Pricing Framework) is the key strategic document underpinning the National Efficient Price (NEP) and National Efficient Cost (NEC) Determinations for the financial year 2020-21.
IHPA has issued the Pricing Framework prior to releasing the NEP20 and NEC20 Determinations, which will be publicly available in March 2020, with the intention of providing an additional layer of transparency and accountability.
There is a growing discussion in Australia and internationally about the need to increase focus on delivering value-based health care with a focus on patient outcomes and experience.
IHPA’s Pricing Guidelines and the National Health Reform Agreement include provisions for IHPA to consider the impact on its work of evidence‑based, effective new technologies and innovations in models of health care.
As prescribed in Section 225 of the National Health Reform Act 2011, the objectives of the IHPA Work Program are to:
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.