AMA supports hospital pricing authority

The AMA has expressed support for the proposed arrangements for an Independent Hospital Pricing Authority.

In a submission on the National Health Reform Amendment (Independent Hospital Pricing Authority) Bill 2011, the AMA welcomed the creation of the Authority but recommended changes to strengthen and clarify the Authority’s functions and procedures.

“The new Independent Hospital Pricing Authority would be responsible for setting the efficient price for the Commonwealth’s contribution to public hospital services and for determining the Commonwealth’s payments for block funding,” AMA President Dr Steve Hambleton said.

“The AMA supports this model which ensures that prices and costs for services provided by public hospitals are calculated and determined independently of governments and political interests, with significant input from medical practitioners and other clinicians.

“But these prices and costs must cover the reasonable expenses of providing effective, comprehensive, high-quality health services including teaching, training, research, service development, and quality improvement.

“The Authority must take into account the role of public hospitals in providing teaching and training and conducting research, and ensure these functions are appropriately supported.

“The Authority must also consider all the performance indicators that hospitals are required to achieve as mandated by COAG under the Performance and Accountability Framework.

“If hospitals are expected to perform to a certain standard, the national efficient price and the efficient cost must provide sufficient funding to achieve those standards,” Dr Hambleton said.

The AMA submission is available at http://ama.com.au/node/7165

GK