Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2026–27

Overview

IHACPA has released its Consultation Paper on the Pricing Framework for Australian Public Hospital Services 2026–27.

The aim of this consultation is to seek feedback on our approach to developing the activity based funding system and block funding arrangements for Australian public hospital services.

The pricing framework for Australian public hospital services is revised and published each year. It outlines the policies that underpin the national efficient price and national efficient cost determinations for the next financial year.

These determinations play a crucial role in calculating the Australian Government funding contribution to public hospitals.

IHACPA invites all interested parties to provide feedback.

Feedback will inform the development of the pricing framework.

This year’s consultation paper focuses on:

• pricing admitted acute care using Australian Refined Diagnosis Related Groups Version 12.0
• reviewing the block funding criteria that underpin the national efficient cost determination
• reviewing pricing adjustments, including for intensive care unit patients, First Nations peoples and individuals residing in rural and remote areas of Australia
• reviewing risk factors for inclusion in the hospital acquired complications and avoidable hospital readmissions risk adjustment models.

Read the consultation paper.

What happens next

Submissions for this consultation close 5pm AEST Friday 13 June 2025.

The feedback and comments from this consultation will be incorporated into the Pricing Framework for Australian Public Hospital Services 2026–27.

The pricing framework will be released in December 2025. It will take effect from 1 July 2026.

Ways to make a submission

• submit your response online
• email submissions.ihacpa@ihacpa.gov.au
• post to Independent Health and Aged Care Pricing Authority, PO Box 483, Darlinghurst NSW 1300

Submissions to the consultation paper

Please note: Unless you specifically request that your submission or parts of your submission should not be released, all submissions will be published. We retain the right not to publish any submissions, or part thereof, where we consider it appropriate to do so.

Personal contact details for all submissions will be removed or redacted from each submission before they are published on our website. Your information will be stored securely and used in accordance with IHACPA’s Privacy Policy.