Document ID: chunk:federal_register_of_legislation:F2016L01377:schedule:4:p2
Version: federal_register_of_legislation:F2016L01377
Segment Type: schedule
Provision Reference: sch 4 (pt 2/3)
Character Range: 3702–6878

In performing the activity referred to in Item 1(i)(b), the Independent Hospital Pricing Authority must have regard to the Parties' intention to focus on avoidable hospital readmissions within 5 days of discharge for conditions referred to in Item 1(i)(b) arising from complications of the management of the original condition that was the reason for the patient's original hospital stay.

(iv)             In performing the activities referred to in Item 1(i), the Independent Hospital Pricing Authority must ensure that any option developed reflects the Parties' intention to send a signal at the health system level of the need to reduce instances of preventable poor quality patient care, while supporting improvements in data quality and information available to inform clinicians' practice.

(v)               In performing the activities referred to in Item 1(i), the Independent Hospital Pricing Authority, should give consideration to any probable known costs and expected benefits.

    (vi)             The Independent Hospital Pricing Authority must provide the advice referred to in Item 1(i) of this Direction to COAG Health Council by 30 November 2016.

  2.      Matters the Independent Hospital Pricing Authority is to have regard to

    (i)                 In performing the activity described in Item 1 of this Schedule, the Independent Hospital Pricing Authority must have regard to the matters set out in subsection 131(3) of the Act.

    (ii)               In addition, in relation to performing the activity described in Item 1 of this Schedule, the Independent Hospital Pricing Authority must, under section 132 of the Act, have regard to the Heads of Agreement on Public Hospital Funding, signed by the Parties on 1 April 2016.

    (iii)            In providing the advice described in Item 1 of this Schedule, the Independent Hospital Pricing Authority is to have regard to the following design principles:

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

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

           ii.      The design and implementation 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)   Options 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