IHACPA Conference 2023

Brisbane, Australia + Virtual | 9 - 11 August 2023

About the Independent Health and Aged Care Pricing Authority

The Independent Health and Aged Care Pricing Authority (IHACPA) is an independent government agency that assists the Australian Government to fund hospital and aged care services more efficiently by providing evidence‑based price determinations and pricing advice.

IHACPA delivers its annual program of work through consultation and collaboration with Commonwealth, state and territory governments, advisory committees, key stakeholders and the public. In 2022, IHACPA’s role expanded from public hospital funding to include support for aged care reforms.

IHACPA’s key functions are to:

  • determine the annual national efficient price and the national efficient cost for public hospital services, and provide a benchmark for the cost of providing those services, to enable activity based funding by the government
  • develop national classifications for healthcare and other services delivered by public hospitals
  • provide residential aged care and respite care pricing and costing advice, refundable accommodation deposit approvals and extra service fee approvals
  • conduct consultation, policy development and costing and pricing studies on the Support at Home program, to provide pricing advice from 1 July 2025.

More information

IHACPA's role is to determine the annual national efficient price and national efficient cost to enable activity based funding for public hospital services.

Activity based funding (hospitals) Activity based funding in the healthcare sector is a way of funding hospitals whereby they get paid for the number and mix of patients they treat. If a hospital treats more patients, it receives more funding. Because some patients are more complicated to treat than others, activity based funding also takes this in to account.

National efficient price The national efficient price (NEP) is based on the average cost of a hospital admission across Australia. NEP is a factor, along with the volume of services delivered, of the government’s funding contribution to public hospitals.

National efficient cost The national efficient cost (NEC) represents the average cost of government funding contributions for services that are not suitable for activity based funding, such as small rural and regional hospitals. The fixed-plus-variable structure enables changes in activity delivered in small rural hospitals to be reflected in funding and ensures there is no disincentive for states to provide services in rural areas.

Sustainable growth in hospital costs The national weighted activity unit (NWAU) is a measure of health service activity expressed as a common unit, against which the national efficient price is determined.

Following the expansion of IHACPA’s role in 2022, IHACPA now provides costing and pricing advice to support aged care reform. While IHACPA’s role is to provide pricing advice to the Minister for Health and Aged Care, it is the government who determines the price for aged care services.

Activity based funding (aged care) Activity based funding in the aged care sector is a system of funding service providers whereby providers are paid for the number and characteristics of people they provide services to. If more people are provided services, the service provider receives more funding. Because some people’s needs are more complex than others, activity based funding also takes this in to account.

Australian National Aged Care Classification The Australian National Aged Care Classification (AN-ACC) is the new funding model for aged care services and replaced the Aged Care Funding Instrument (ACFI) from 1 October 2022. All permanent aged care residents will receive funding according to the AN-ACC funding class they are assigned, which is based on their assessed care needs.

Under the Australian National Aged Care Classification (AN-ACC) funding model, activity data from residential aged care providers will be reported to the government. This will include data on the assessed AN-ACC classes of the residents as well as demographic and facility data.

Aged care pricing advice – IHACPA’s role IHACPA’s aged care pricing advice includes work across policy, pricing and costing, data collections, working groups and committees.

Past conferences

Activity Based Funding Conference 2022

IHACPA hosted its ninth Activity Based Funding Conference from Thursday 5 to Friday 6 May 2022.

Delivered digitally for the first time, the two-day program drew on the highly regarded format from previous years, with some additional unique opportunities fit for the virtual environment.

IHACPA was thrilled to have 2,371 delegates join from around the world to learn more about how health care is funded in Australia and internationally, from 47 speakers who shared their technical expertise, insights and personal experiences.

The scientific program draws on the experience of influential thought leaders in activity based funding, and for the ninth conference it was underpinned by the theme: 'Innovation and collaboration: Activity based funding for sustainability in healthcare'.

The theme of ABF22 offered delegates the opportunity to reflect on the past decade of ABF funding, with a forward view to considering the objectives of the new Addendum to the National Health Reform Agreement 2020–25.

Audio recordings are avilable on SoundCloud.

Video recordings
Watch via YouTube
Activity Based Funding Conference 2022

Date: 5 – 6 May 2022

Location: Virtual

Theme: Innovation and collaboration: Activity based funding for sustainability inhealth care

Keynote speakers

  • Dr Amohia Boulton, Auckland University of Technology (New Zealand)
  • Mr Martin Campbell, National Health Service, England (UK)
  • Prof Paul Glasziou AO, Bond University (Australia)


View the abstracts here

Activity Based Funding Conference 2021

Date: 5 – 7 May 2021

Location: Virtual

Theme: Activity based funding into the future: Responsive. Relevant. Reliable.

Keynote speakers

  • Dr Ezekiel J. Emanuel, University of Pennsylvania (USA)
  • Dr Tobias Wirén, Capio Orthopedics (Sweden)
  • Dr Sally Lewis, Swansea School of Medicine (UK)
  • Dr Louise Schaper, Australasian Institute of Digital Health (Australia)
Activity Based Funding Conference 2019

Date: 13 – 15 May 2019

Location: Melbourne, Victoria

Theme: Activity Based Funding: Cost, value and outcomes

Keynote speakers

  • Professor Christine Bennett AO, The University of Notre Dame (Australia)
  • Professor Andrew Street, The London School of Economics and Political Science (UK)
  • Dr Jason Sutherland, University of British Columbia (Canada)
Activity Based Funding Conference / 33rd Patient Classification Systems International Conference 2017

Date: 9 – 14 October 2017

Location: Sydney, New South Wales

Theme: Advancing value based health care

Keynote speakers

  • Dr Zeynep Or, Institute for Research and Information in Health Economics (France)
  • Professor James Harrison, World Health Organisation (Australia)
  • Professor Shinya Matsuda, University of Occupational and Environmental Health Hospital (Japan)
  • Mark Sonneborn, Minnesota Hospital Association (USA)
Activity Based Funding Conference 2016

Date: 9 – 11 May 2016

Location: Brisbane, Queensland

Theme: Future directions for Activity Based Funding

Keynote speakers

  • Stuart Guterman, Senior Scholar in Residence, AcademyHealth (USA)
  • Dr Frank Heimig, Managing Director, inEK GmbH (Germany)
  • Rob Anderson, Director, Activity Based Management Reform, WA Health (Australia)
  • Mark Cormack, Deputy Secretary, Strategic Policy and Innovation, Commonwealth Department of Health (Australia)
  • Dr Myles Cover, Technical Manager, Hospital Costing, Independent Hospital Pricing Authority (Australia)
  • Toni Cunningham, Senior Director, Purchasing and Funding, QLD Health (Australia)
Activity Based Funding Conference 2015

Date: 27 – 29 May 2015

Location: Adelaide, South Australia

Theme: Driving transparency and efficiency in Australian hospitals

Keynote speakers

  • Dr Diane Watson, Chief Executive Officer, National Health Performance Authority (Australia)
  • Prof. Keith Willett, Director, Acute Episodes of Care, National Health Service (UK)
  • Dr Sule Calikoglu, Deputy Director, Research and Methodology Health Services Cost and Review Commission (USA)
  • Jenny Browne, Chief Financial Officer, Northern Adelaide Local Health Network, SA Health (Australia)
  • Dr Robert Herkes, Clinical Director, Australian Commission on Safety and Quality in Health Care (Australia)
Activity Based Funding Conference 2014

Date: 23 – 25 June 2014

Location: Melbourne, Victoria

Theme: Implementing Activity Based Funding at the hospital level

Keynote speakers

  • Dr Michael Wilke, Managing Director, inspiring-health GmbH (Germany)
  • Shane Solomon, Chair, Independent Hospital Pricing Authority and Head, Health Business Unit, Telstra (Australia)
  • Dr Tony Sherbon, (former) Chief Executive Officer, Independent Hospital Pricing Authority (Australia)
  • James Downie, (then) Executive Director, Activity Based Funding, Independent Hospital Pricing Authority (Australia)

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