The Development of Costing and Pricing Advice in the Aged Care Sector by the Independent Hospital Pricing Authority

Thursday 13 October 2022

11:15am – 11:45am

Speaker Bio

Genevieve Donnelly joined IHACPA in 2021 as the Executive Director, Aged Care Policy and Communications with the Independent Health and Aged Care Pricing Authority. Prior to this, Genevieve was Manager, Healthcare Quality Outcomes with icare NSW and Head of Clinical Services Strategy with Opal Aged Care. Genevieve worked collaboratively with clinicians nationally to support the roll out of My Health Record as Director, Clinical Partnerships and Insights with the Australian Digital Health Agency.

Genevieve is a registered pharmacist, graduating from the University of Sydney, holds an Executive MBA from the University of Technology Sydney and is a graduate of the Australian Institute of Company Directors.

Abstract 

In response to the Royal Commission into Aged Care Quality and Safety, the Commonwealth Government (the Government) announced a range of reforms across the aged care sector. The reforms include expansion of the Independent Health & Aged Care Pricing Authority (IHACPA) to take on the role of providing independent advice to the Government on costing and pricing for Government funded aged care services. This role will enable aged care funding, including the new classification and funding model system, the Australian National Aged Care Classification (AN-ACC), to be directly informed by the actual costs of delivering care and services. It is anticipated that Government residential aged care funding will be informed by IHACPA’s pricing advice from 1 July 2023.

IHACPA’s established role in public hospital pricing relies on a consultative, transparent and evidence-based approach. IHACPA is committed to the same principles in developing independent aged care costing and pricing advice. The aged care work program will involve annual public consultation and refinement of an aged care pricing framework based on stakeholder feedback. Feedback and cost and activity data (including from new costing studies as well as Aged Care Financial Report and Quarterly Financial Report data) will be translated into evidence-based classification, costing and pricing advice.

IHACPA is currently developing its first Pricing Framework for Australian Aged Care Services (the Framework), underpinning IHACPA’s approach to providing independent and transparent annual pricing advice. Based on public consultation, the Framework incorporates the pricing principles and the key challenges for aged care costing and pricing. The Framework will initially focus on the AN-ACC funding model in the context of residential aged care and respite. Future consultations will expand to incorporate principles and issues relevant to home and community aged care. The Framework will outline a long-term vision for the refinement of aged care classification, costing and pricing over time.