Consultation Paper on a Methodology for Determining the Benchmark Price for Prostheses in Australian Public Hospitals

The Independent Hospital Pricing Authority’s (IHPA) primary function is to calculate and deliver an annual national efficient price of public hospital services.

The 2021–22 Federal Budget, released in May 2021, included a measure to modernise and improve the private health insurance Prostheses List.

Under this measure, the Department of Health will implement reforms in conjunction with IHPA to reduce the cost of medical devices used in the private health sector and streamline access to new medical devices. 

IHPA developed the Consultation Paper on a Methodology for Determining the Benchmark Price for Prostheses in Australian Public Hospitals to seek feedback from stakeholders on the proposed approach for establishing the benchmark price for prostheses. 

The consultation papers sought public comment on a number of key aspects in relation to IHPA’s work in this area, including data sources, benchmark price calculation and legitimate differences between the public and private sectors that should be accounted for in setting the benchmark price. Public consultation was open from Monday 6 September 2021 to Friday 1 October 2021.

The feedback and comments received through the consultation process will be incorporated into the Methodology for Determining the Benchmark Price for Prostheses in Australian Public Hospitals.