Independent Hospital Pricing Authority

The Independent Hospital Pricing Authority (IHPA) is an independent statutory authority established under Commonwealth legislation on 15 December 2011 as part of the National Health Reform Agreement (NHRA) reached by the Council of Australian Governments (COAG) in August 2011.

The NHRA sets out the intention of the Australian Government and state and territory governments to work in partnership to improve health outcomes for all Australians.

The Independent Hospital Pricing Authority (IHPA) was a key element of the NHRA, and is charged with determining the National Efficient Price (NEP) for public hospital services, allowing for the national introduction of activity based funding (ABF).

The implementation of ABF will improve transparency, and strengthen incentives for efficiency in the delivery of public hospital services.