IHACPA Determinations Released for 2024-25

The Independent Health and Aged Care Pricing Authority (IHACPA) has released two key determinations for 2024-25:

• National Efficient Price (NEP) which sets Australian Government payments for in-scope public hospital services that are funded on an activity basis. The NEP for 2024⁠–⁠25 is $6,465 per national weighted activity unit. Key changes for 2024-25 include pricing admitted subacute and non-acute care using the Australian National Subacute and Non-Acute Patient Classification Version 5.0 following two years of shadow pricing; and pricing non-admitted services using the Tier 2 Non-Admitted Services Classification Version 9.0.
• National Efficient Cost (NEC) which determines the Australian Government funding contribution for services that are block funded, such as for small rural hospitals. For NEC 2024–25, the fixed cost is $2.380 million and the variable cost is $6,770.

The determinations are based on an extensive program of research and analysis into healthcare needs and changes, summarised in the Pricing Framework for Australian Public Hospital Services 2024–25. The Administrator of the National Health Funding Pool will use the determinations to calculate the Australian Government funding contribution for Australian public hospital services in the 2024–25 financial year.