Independent Hospital Pricing Authority

The Independent Hospital Pricing Authority (IHPA) was established to oversee significant reforms to improve Australian public hospitals. One of these significant reforms is the implementation of National Activity Based Funding (ABF) for Australian public hospitals. The implementation of ABF provides incentives for efficiency, and increases transparency in the delivery and funding of public hospital services across Australia. The IHPA's primary function is to calculate and deliver an annual National Efficient Price (NEP). The NEP is a major determinant of the level of Australian Government funding for public hospital services, and provides a price signal or benchmark for the efficient cost of providing public hospital services. The Authority undertakes 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. The IHPA works in partnership with the National Health Performance Authority (NHPA) and 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.