Independent Hospital Pricing Authority releases National Efficient Price and National Efficient Cost for Australian public hospital services – 3 March 2014

Posted on March 4, 2014. Filed under: Health Economics | Tags: , , , |

Independent Hospital Pricing Authority releases National Efficient Price and National Efficient Cost for Australian public hospital services – 3 March 2014

“The Independent Hospital Pricing Authority (IHPA) today released the National Efficient Price (NEP) and National Efficient Cost (NEC) Determinations for Australian public hospital services for 2014-15

The NEP and NEC determine the Commonwealth funding contribution to Australian public hospitals according to either hospital activity levels, or in the case of small rural hospitals, an allocation of block funding.

The NEP underpins Activity Based Funding and will apply to approximately 260 public hospitals nationwide including all of the large metropolitan hospitals.

For the first time, from 1 July 2014 the Commonwealth funding for most public hospital services will be directly determined by Activity Based Funding. Under the new system public hospitals are paid for the number and mix of patients they treat. ”

… continues on the site

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Is it possible to incorporate quality into hospital pricing systems? – Deeble Institute Evidence Brief – 22 July 2013

Posted on July 25, 2013. Filed under: Clin Governance / Risk Mgmt / Quality, Health Economics | Tags: , |

Is it possible to incorporate quality into hospital pricing systems? – Deeble Institute Evidence Brief – 22 July 2013

“Australia has recently implemented an activity-based funding system for public hospitals. Policymakers and providers are keen to ensure that the price paid for health care services stimulates improvements in quality and safety, but some remain sceptical that this can be achieved through pricing mechanisms.

There are four main ways of linking quality and safety to hospital pricing in the context of activity based funding:”

… continues

 

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Independent Hospital Pricing Authority releases national efficient price for 2013-14 for Australian public hospital services – 28 February 2013

Posted on February 28, 2013. Filed under: Health Economics | Tags: , , , |

Independent Hospital Pricing Authority releases national efficient price for 2013-14 for Australian public hospital services –  28 February 2013

“The Independent Hospital Pricing Authority (IHPA) today released the national efficient price determination for Australian public hospital services for 2013-14.

The national efficient price for 2013-14 is $4,993 per national weighted activity unit. This compares with the 2012-13 price of $4,808.

The national efficient price for public hospital services underpins the national introduction of activity based funding across Australia for Commonwealth funded public hospital services.

Shane Solomon, Chair of the Pricing Authority said IHPA has determined a national efficient price that reflects the costs of delivering the many different services provided by hospitals across Australia.

This is the first time that IHPA has defined the scope of services eligible for Commonwealth funding under the National Health Reform Agreement. Consistent with the National Health Reform Agreement, IHPA has included services that can prevent the need for hospitalisation, such as community palliative care services.”

… continues

Pricing Framework for Australian Public Hospital Services 2013-14

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Reviewing the Potential Roles of Financial Incentives for Funding Healthcare in Canada – Canadian Foundation for Healthcare Improvement – December 2012

Posted on February 26, 2013. Filed under: Health Economics | Tags: , |

Reviewing the Potential Roles of Financial Incentives for Funding Healthcare in Canada – Canadian Foundation for Healthcare Improvement – December 2012

ISBN 978-1-927024-65-2
Jason M. Sutherland, Nadya Repin, R. Trafford Crump

“Key Messages

Healthcare costs have been consistently rising, now constituting around 40 percent of provincial GDPs, and threaten to overwhelm the ability of provinces to fund the breadth of healthcare needs of their residents. The ways in which Canadian provinces fund healthcare is an important issue facing policymakers since ineffective, inefficient and unsafe care is a waste of taxpayers’ money and potentially harms patients.
Currently, most provinces fund healthcare through a ‘global budget,’ where a fixed amount of funding is distributed to a provider (e.g. a hospital or a health authority) to pay for all insured healthcare services for a fixed period of time. The key benefit of global budgets is that they provide a method to control expenditures. Hospitals account for the largest piece of these expenditures, at about 28 percent of total healthcare costs.
Compared to international norms, Canada is unusual in its extensive use of global budgets to fund healthcare. Most countries fund healthcare based on the type and amount of services provided, known as activity-based funding (ABF).
Funding healthcare providers based on the type and amount of services provided increases transparency in the healthcare system and creates financial incentives for increasing access. However, with more services provided, there is a commensurate increase in healthcare expenditures.
Many countries have been able to use the financial incentives of ABF to improve access to care while effectively minimizing the downside risks to quality and safety.
With clearly articulated policy objectives, provinces are in a position to learn from other countries’ experiences in healthcare funding reforms, adapt effective strategies and avoid risks to quality and access.”

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Consultation paper for the Pricing Framework for Australian Public Hospital Services 2013-14 – Independent Hospital Pricing Authority (IHPA) – 31 August 2012

Posted on September 21, 2012. Filed under: Health Economics | Tags: , |

Consultation paper for the Pricing Framework for Australian Public Hospital Services 2013-14 – Independent Hospital Pricing Authority (IHPA) – 31 August 2012

Extract from the introduction:

“In June 2012, the Independent Hospital Pricing Authority (IHPA) published the National Efficient Price Determination for 2012-13, and the Pricing Framework for Australian Public Hospital Services 2012-2013 that underpinned the determination.

The Pricing Framework was developed over the preceding six months, and included the publication of a discussion paper, an extensive consultation period with key stakeholder groups around the country, and a call for public submissions, which resulted in over 90  responses from a wide range of stakeholders across the country.

IHPA has committed to provide the draft National Efficient Price Determination and draft Pricing Framework to Health Ministers by 30 November 2012 for the 2013-14 financial year, and will again take public submissions in the lead up to this, as required under the National Health Reform Act 2011 (the Act). This document aims to provide some background as to the questions that IHPA considers pertinent in 2013-14, and should be read in conjunction with the Pricing Framework for Australian Public Hospital Services 2012-13 and the National Efficient Price Determination for 2012-13, both of which are available on IHPA website http://www.ihpa.gov.au

… continues

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Patient-level costing: can it yield efficiency savings? – Nuffield Trust – 20 September 2012

Posted on September 21, 2012. Filed under: Health Economics | Tags: , |

Patient-level costing: can it yield efficiency savings? – Nuffield Trust – 20 September 2012

“This report examines how, in an era of financial challenge, NHS trusts can make better use of cost information at the patient level, as the first step towards greater efficiency.

Summary

The challenge faced by the NHS of achieving major efficiency savings (estimated at around four to five per cent a year between now and 2015) highlights the desirability of improving the availability and scrutiny of data on the costs and outcomes of health care.

Patient-level costing systems (or ‘PLICS’) were introduced in the NHS in the mid-2000s. The Nuffield Trust research summary: Patient-level costing: can it yield efficiency savings? highlights the key findings of a full report looking at the use of these computerised information systems in hospitals that were set up to track and enable analysis of the costs of care incurred by individual patients.

The report examines whether the implementation of information systems for patient-level costing might lead to greater efficiencies.

Specifically, the study examines how trusts are using and planning to use patient-level costing systems, drawing on the experiences of several early adopters. It also draws an empirical analysis of data from one trust that is more advanced than most in its use of patient-level costing.

The study found that costs to the hospital can be very different from the price they receive for care, with only 17 per cent of cases within 10 per cent of the NHS tariff cost. It also found costly variations of care procedures for similar cases within trusts, and a ‘clustering’ of costs around a small minority of patients; both of these offer the potential for service redesign and potential cost savings.”

… continues on the site

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Activity-based hospital funding: we’ve waited long enough – Montreal Economic Institute – May 2012

Posted on May 18, 2012. Filed under: Health Economics | Tags: |

Activity-based hospital funding: we’ve waited long enough – Montreal Economic Institute – May 2012

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Beyond the Hospital Walls: Activity Based Funding Versus Integrated Health Care Reform – Canadian Centre for Policy Alternatives – January 2012

Posted on January 30, 2012. Filed under: Health Economics, Health Mgmt Policy Planning | Tags: , |

Beyond the Hospital Walls: Activity Based Funding Versus Integrated Health Care Reform – Canadian Centre for Policy Alternatives – January 2012

by Marcy Cohen, Margaret McGregor, Iglika Ivanova, Chris Kinkaid
ISBN: 978-1-926888-93-4

“Debate about the changed needed to encourage better, more cost-effective health care in Canada heated up over the past year, spurred by anticipated negotiations on a new Health Accord between the federal and provincial governments.

This paper examines two policy options now being introduced in BC, both of which are relevant to other provinces; the first a more integrated approach to health care, and the second a new model for hospital funding known as activity based funding.

Under activity based funding, or ABF, health care providers like hospitals are funded based on the number and type of “activities” they actually perform. In the case of BC, the focus is primarily on encouraging hospitals to carry out more surgical procedures. For these services ABF replaces global funding, which gives health care providers a set budget each year.

We review the international evidence about the effectiveness of these two approaches, and propose concrete recommendations for BC to pursue in the coming years.”

Summary

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Developing tariffs for integrated sexual health services – British Association for Sexual Health and HIV – 26 April 2010

Posted on May 19, 2010. Filed under: Health Economics | Tags: , |

Developing tariffs for integrated sexual health services – British Association for Sexual Health and HIV

“The aim of the London Sexual Health Programme (LSHP) tariff programme is the development and implementation of an agreed set of currencies and tariff/s for integrated sexual health services to be paid by PCTs to providers of sexual health services.”

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Activity Based Funding – CHSD Education and Information Series – University of Wollongong – Centre for Health Service Development

Posted on April 6, 2010. Filed under: Health Economics | Tags: , |

Activity Based Funding – CHSD Education and Information Series – University of Wollongong – Centre for Health Service Development
 
“On 3 March 2010, Prime Minister Rudd released a proposal for reform of the Australian health system called ‘A National Health and Hospitals Network for Australia’s Future’.  A key feature of this reform proposal is the national introduction of Activity Based Funding (ABF).
 
The CHSD is producing a series of short papers on ABF.  This education and information series is designed to explain some of the key issues surrounding the Rudd hospital reform plan in more detail. ”

As at 2 August 2011, the following papers are available”

ABF Information Series No. 1: What is activity-based funding?
ABF Information Series No. 2: The special case of smaller and regional hospitals
ABF Information Series No. 3: Lessons from the USA
ABF Information Series No. 4: The cost of public hospitals – which State or Territory is the most efficient?
Note: If you have already downloaded ABF Number 4 above, please note that a revision was issued on 27 March 2010. The link above is to the 27 March revision.
ABF Information Series No. 5: Counting acute inpatient care
ABF Information Series No. 6: Subacute care
ABF Information Series No. 7: Research and training
ABF Information Series No. 8: Mental health [NEW]

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