The Pricing Framework provides the methodology used to determine the National Efficient Price (NEP) and the National Efficient Cost (NEC) and is put together through extensive consultation with jurisdictions and stakeholders.
The NEP Determination is used to calculate Commonwealth payments for public hospital services that are funded on an activity basis, whilst the NEC Determination covers those services which are block funded, such as small rural hospitals.
Shane Solomon, Chair of the Pricing Authority said this is the third Pricing Framework issued by IHPA.
“This year we have published the Pricing Framework prior to releasing the NEP and NEC Determinations building on the transparency and accountability we have already established at IHPA by making available the key principles, scope and approach adopted to inform the NEP and NEC Determinations,” he said.
“IHPA was pleased to receive submissions from over 40 organisations during its consultation period, including all state and territory governments and the Commonwealth Government.
“All submissions have been carefully considered and where appropriate, incorporated into the Pricing Framework,” said Mr Solomon.
Submissions regarding the Pricing Framework for Australia Public Hospital Services 2014-15 consultation are available on the IHPA website (except where submissions have been provided in confidence).
The NEP and NEC Determinations will be published on the IHPA website in February 2014.
