IHPA's primary function is to enable Activity Based Funding for Australian public hospital services.
IHPA does this by delivering an annual National Efficient Price (NEP) and National Efficient Cost (NEC). The NEP and NEC are a major determinant of the level of Commonwealth Government funding for public hospital services and provide a price signal or benchmark for the efficient cost of providing public hospital services.
We undertake several major areas of work designed to inform the annual determination of the NEP, including ongoing consultation with all Australian health departments, expert advisory committees and key stakeholders.
IHPA is also responsible for developing national classifications for health care and other services delivered by public hospitals and, as required, resolving disputes on cost-shifting and cross-border issues.
We work in partnership with the Australian Commission on Safety and Quality in Health Care to ensure that pricing, quality and performance measures for public hospitals are complementary and facilitate a strong national framework for the delivery of public hospital services.