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Background
The Pricing Framework underpins how the Independent Health and Aged Care Pricing Authority (IHACPA) determines the national efficient price (NEP) and national efficient cost (NEC) that drive the Commonwealth’s activity-based and block funding contributions to public hospitals. This year’s paper is the first developed under the Addendum to the National Health Reform Agreement 2026 to 2031, signed by all governments on 27 February 2026 and effective from 1 July 2026, which reframes national health funding around better outcomes and value for patients, stronger shared stewardship, and a simpler, more equitable funding model.
