Document ID: chunk:federal_register_of_legislation:F2017L00179:schedule:4:p3
Version: federal_register_of_legislation:F2017L00179
Segment Type: schedule
Provision Reference: sch 4 (pt 3/4)
Character Range: 6648–10023

to in Item 1 of this Direction in The Pricing Framework for Australian Public Hospital Services, in March 2017.

    (v)               In undertaking implementation, evaluation and provision of the advice described in Item 1 of this Schedule, the Independent Hospital Pricing Authority is to have regard to the following design principles:

         (a)   Reforms prioritise patient outcomes and are evidence based:

            1. Better patient health outcomes underpin the design and implementation of reform

           ii.      The implementation and evaluation of pricing and funding models for safety and quality, and reducing avoidable readmissions, are based on robust evidence

           iii.      Adjustments are based on evidence of a causal link to the condition or complication, and are commensurate with the additional care required as a result of the complication

           iv.      Adjustments relate to conditions or complications which clinicians and other health professionals are reasonably able to take action to reduce their incidence or impact

           v.      Any models should add to the evidence base for strategies to address safety and quality, with robust monitoring of the effectiveness of implementation and ultimately, their impact on patient outcomes.

         (b)   Reforms are consistent with whole-of-system efforts to deliver improved patient health outcomes:

            1. Adjustments complement existing national and state measures to improve patient health outcomes and reduce avoidable hospital demand, including but not limited to the Australian Commission on Safety and Quality in Health Care's goals, national benchmarking, data reporting, and accreditation

           ii.      The implementation of pricing and funding models acknowledges that mechanisms other than pricing and funding have a role in achieving the reform intention and that complementarity of all mechanisms is desirable

           iii.      The design and implementation of pricing and funding models should not compromise state system financial sustainability and quality and should therefore be focused on system level performance improvement.

         (c)   Reforms provide transparency and comparability:

            1. As far as practicable, implementation of financial levers provide transparency between the approach and the intended outcome

           ii.      Pricing models use an appropriate risk adjustment methodology to consider different patient complexity levels or specialisation across jurisdictions and hospitals.

    (vi)             In addition, in relation to undertaking functions as described in Item 1 of this Schedule, the Independent Hospital Pricing Authority is to have regard to submissions from the Australian Commission on Safety and Quality in Health Care, the National Health Funding Body, the Commonwealth, States and Territories, and other parties deemed relevant by the Independent Hospital Pricing Authority.

    (vii)           The Australian Commission on Safety and Quality in Health Care will curate the Australian Sentinel Events List and the Hospital Acquired Complications List, develop rates of preventability for each hospital acquired complication to inform a risk adjustment methodology and lead development of a national consistent definition of avoidable hospital readmissions.

[1] Indicators