Skip to content
Medical Health Aged Care, Mental Health

IHACPA releases the Pricing Framework for Australian Public Hospital Services 2024-25

Independent Health and Aged Care Pricing Authority 2 mins read

The Independent Health and Aged Care Pricing Authority (IHACPA) has released the Pricing Framework for Australian Public Hospital Services 2024–25 (the Pricing Framework) following public consultation.

The Pricing Framework, updated annually, outlines the policy and evidence that will inform the development of the National Efficient Price (NEP) Determination 2024–25 (NEP24) and the National Efficient Cost (NEC) Determination 2024–25 (NEC24). 

The Australian Government will use these determinations to calculate their funding of Australian public hospital services in the 2024–25 financial year. 

Significant updates to the Pricing Framework include an intention to transition community mental health care from block funding to activity based funding and factoring ongoing financial pressures into the pricing model.

IHACPA Chair, Mr David Tune AO PSM said: ‘Developing a sustainable pricing model every year calls for a high level of collaboration and critical analysis to ensure funding of Australian public hospital services is transparent and equitable.’ 

For the first time, the Pricing Framework presents IHACPA’s intention to price community mental health care services using the Australian Mental Health Care Classification Version 1.0 for NEP24 after three years of shadow pricing. 

‘The transition from block funding to activity based funding in community mental health care is the culmination of over 10 years of work from IHACPA and stakeholders,’ Mr Tune said.

‘The important shift towards a consumer-centred classification and funding model will improve transparency and give more clarity to hospitals and service providers. It will also ensure funding is based on the volume, type and complexity of mental health care delivered in the community.’ 

The Pricing Framework also presents IHACPA’s approach to managing the ongoing impact of financial pressures on public hospital services following a year of collaboration with jurisdictions. It ensures changes in demand for hospital services, inflationary pressures and the higher costs associated with treating patients with COVID-19 are accounted for in the NEP and NEC Determinations for 2024–25. 

Other updates include: 

  • pricing the updated Australian National Subacute and Non-Acute Patient Classification Version 5.0 for NEP24 after two years of shadow pricing
  • introducing two new classes relating to the supervised administration of opioid agonist treatment and home-based subcutaneous immunoglobulin infusion treatment in non-admitted setting.

Each year, IHACPA updates the Pricing Framework to reflect healthcare changes. 

The latest version was developed following extensive consultation with jurisdictions and stakeholders, and analysis of 27 submissions received in response to IHACPA’s Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2024–25

Submissions and a summary of feedback are available on IHACPA’s website.

IHACPA will release the final NEP and NEC Determinations in March 2024.

About us:


IHACPA is an independent federal government agency that supports the Australian Government to fund public hospitals and aged care services more efficiently.

Established in 2011, IHACPA uses data and consults widely to determine the annual cost and price of public hospital services and provide advice to inform government decisions on the cost and price of aged care services.  

Contact details:

IHACPA Communications
0468 517 253 |

More from this category

  • Medical Health Aged Care
  • 26/02/2024
  • 00:05
Monash University

Clearer and faster: 5-minute MRI’s on the horizon

A 5-minute full-body MRI scan could soon become a reality with the help of a promising new AI method developed by Monash University engineers. In a study published in Computers in Biology and Medicine, researchers have shown how their novel AI technology, McSTRA, outperformed state-of-the-art methods, producing enhanced clinic imaging in record time. MRI scans can take up to 60 minutes, depending on the size of the area being scanned. The new software was capable of completing scans 10-times faster than current MRI technology, giving it the potential to reduce scan times to just minutes and boost the number of…

  • Medical Health Aged Care
  • 25/02/2024
  • 04:30
Dementia Australia

Join us TODAY for the Canberra Memory Walk & Jog

What: Dementia Australia’sCanberraMemory Walk & Jog When: Sunday 25 February 2024, from 7.30am Who: More than 800 locals participating on the day. People who have been impacted by dementia, their family, friends and carers. Where: Barrine Drive, Lake Burley Griffin For more information visit: Walk or jog with us. We are in this together. Dementia Australia is the source of trusted information, education and services for the estimated more than 421,000 Australians living with dementia, and the more than 1.6 million people involved in their care. We advocate for positive change and support vital research. We are here to…

  • Contains:
  • Medical Health Aged Care
  • 24/02/2024
  • 07:07
CGFNS International

CGFNS International Unveils New Think Tank to Advance Health Workforce Development Scholarship and Solutions Worldwide?

PHILADELPHIA, PA / ACCESSWIRE / February 23, 2024 / CGFNS International announced today it has established a Global Health Workforce Development Institute. The new think tank will conduct original research and leverage knowledge developed by CGFNS over its half-century of providing credentialing services -- as well as its vast experience with workforce mobility issues -- to advance scientific knowledge about the evolution of health workforce roles and the development of credentialing and certification programs and policies.CGFNS International A long-term objective of the Institute will be to create rigorous global certification programs that streamline the assessment and recognition of practice competency.…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.