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Legislation

The Independent Hospital Pricing Authority (IHPA) is a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013.

National Health Reform Agreement
IHPA was established under the National Health Reform Act 2011, giving effect to the National Health Reform Agreement signed by the Australian Government and all states and territories in August 2011.

The National Health Reform Agreement sets out the intention of all Australian governments to work in partnership to improve health outcomes for all Australians.

Addendum to the National Health Reform Agreement
In 2017, all Australian governments signed the Addendum to the National Health Reform Agreement.

The Addendum preserves important parts of the existing hospital funding system, including activity based funding. It also focuses on reducing unnecessary hospitalisations and improving patient safety and service quality.

Under the Addendum, IHPA is required to advise on options for a comprehensive and risk‑adjusted model to determine how funding and pricing could be used to improve health outcomes for patients and decrease avoidable demand for public hospital services.