Review activity-based funding models, and jurisdictional differences

Activity-based funding (ABF) is the main scheme for delivering publicly funded health services in Australian hospitals. The Independent Hospital Pricing Authority (IHPA) is the independent government agency charged with setting the scheme’s parameters. The IHPA has a transparent, nationally consistent system to classify patients based on the complexity of the treatment or service they receive.

Hospitals supply the IHPA every quarter with anonymised activity data including information about each patient. Hospitals also provide IHPA annually with information about the cost of providing different services. This helps the IHPA to set a pricing model that includes all the related costs of providing each type of service.

This project will investigate whether comprehensive data for genomic services delivery is being provided to the IHPA for consideration. If not, the project will support detailed costing studies to be undertaken for the provision of genomic health services, including genomic tests.

Supplying the IHPA with accurate data should ensure the ABF pricing model funds genomic services in an evidence-based way to improve patient care and ensure equitable access for people across Australia.