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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:
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.
As prescribed in Section 225 of the National Health Reform Act 2011 (the Act), the objectives of the IHPA Work Program are to:
- set out IHPA’s work program for the coming year; and
- invite interested persons (including states and territories) to make submissions to the Pricing Authority about the work program up to 30 days after publication.
An extract of Section 225 of the Act is attached at Appendix 1.
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.