Independent Hospital Pricing Authority

IHPA is an independent government agency 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.

IHPA is charged with implementing national Activity Based Funding (ABF) by determining the National Efficient Price and the National Efficient Cost for public hospital services each year. ABF improves transparency, and strengthens incentives for efficiency in the delivery of public hospital services.