The consultation is open to the public for 30 days until Friday 7 June 2024.
The consultation paper is the main opportunity for stakeholders to provide input on IHACPA’s policy approach, to develop the national efficient price (NEP) and national efficient cost (NEC) determinations for Australian public hospital services.
Feedback received will inform the development of major policy decisions outlined in the final Pricing Framework for Australian Public Hospital Services 2025–26, which underpins the determinations. These determinations play a crucial role in calculating the Commonwealth funding contribution to public hospitals for the next financial year.
The focus of this year’s consultation is to seek feedback on the agency’s approach to pricing using updated classifications, refinements to the national pricing model to better account for changes in service delivery, and improvements to data collection and safety and quality measures.
The Chair of the Pricing Authority, Mr David Tune AO PSM said, “It is our hope that stakeholders across the healthcare sector will provide their valuable feedback on the approaches IHACPA can take to ensure policies improve the transparency and efficiency of pricing and support a sustainable future for public hospitals.”
Updated classifications for pricing to better reflect complexity of care
As part of this consultation, IHACPA is seeking feedback on a proposal to use an updated classification for the pricing of emergency department services and mental health care for the NEP Determination 2025–26 (NEP25).
The updated classification Australian Emergency Care Classification Version 1.1, which will be released by mid-2024, includes updates to the complexity model based on the most recent national activity and cost data.
IHACPA is also seeking feedback on our proposal to transition community mental health from block funding to activity based funding using the Australian Mental Health Care Classification (AMHCC) Version 1.1 for NEP25. AMHCC Version 1.1 was released in December and is a modest refinement of the classification structure.
This milestone follows 4 years of shadow pricing and over 10 years of extensive work with IHACPA’s jurisdictional and clinical stakeholders to develop a consumer-centred classification for mental health care services.
Mr David Tune AO PSM observed, “Since it was introduced in 2011, activity based funding has served as a cornerstone in the reforms that aim to improve the value of public investment in Australian hospital care.
