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Pricing Framework for Australian Public Hospital Services 2019-20

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In December 2018, the Independent Hospital Pricing Authority (IHPA) released its Pricing Framework for Australian Public Hospital Services 2019-20. A key policy outcome proposed in the 2019-20 publication is the intention to monitor and benchmark avoidable hospital readmissions from July 2019.

IHPA has worked closely with a range of stakeholders—including clinicians, on interventions targeting avoidable hospital readmissions.

The implementation of pricing and funding approaches for safety and quality has been rolled out in stages. From July 2017 no Commonwealth funding has been provided for episodes of care with sentinel events such as medication errors leading to death. Since July 2018 funding has been reduced for any episode of care where a hospital acquired complication occurs.  These pricing and funding approaches intend to complement existing strategies to improve safety and quality in public health care.

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