AMA provides a submission to the first IHACPA consultation on aged care pricing

The AMA’s submission will be part of the Independent Hospital and Aged Care Pricing Authority advice ahead of costing decisions to be implemented next year.

The first ever consultation on aged care pricing by the Independent Hospital and Aged Care Pricing Authority (IHACPA) concluded on 13th of October 2022. The authority replaced the Independent Hospital Pricing Authority after it was given additional roles following the government’s response to the Aged Care Royal Commission’s recommendations.

The IHACPA’s expanded role in providing independent aged care pricing advice will aim to ensure  aged care funding is directly informed by the actual costs of delivering care. This will include the use of a new classification system for residential aged care and respite care — the Australian National Aged Care Classification (AN-ACC). The IHACPA’s advice will inform Commonwealth Government decisions on the costing and pricing of aged care services from 1 July 2023. 

The AMA’s submission to the IHACPA’s Aged Care Pricing Framework Consultation addresses issues the AMA sees as key for adequate aged care pricing, but also for ensuring sustainability of the aged care system.

From the AMA’s perspective the key issues in designing and implementing an adequate funding model will be:

• the aged care assessments under the new model and how and by whom they are conducted
• flexibility of the funding model and how it will enable and support innovation
• how the new pricing model will allow for funding of other activities that do not fall under direct care but are important to ensure quality care (e.g. Medication Advisory Committees, clinical advisory committees and similar)
• continued evaluation to ensure the best outcomes for older people.

Read the AMA’s submission to the IHACPA’s Aged Care Pricing Framework Consultation.