Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services

In a bid to improve quality of care, numerous countries have incorporated rewards and penalties into the funding and pricing of hospital services. This paper outlines recent advances in Australia to incorporate financial penalties for hospital acquired complications (HACs) and avoidable hospital rea...

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Main Authors: Samuel B. G. Webster, Sarah E. Neville, Jennifer Nobbs, Jada Ching, Kees van Gool
Format: Article
Language:English
Published: SAGE Publishing 2023-07-01
Series:Health Services Insights
Online Access:https://doi.org/10.1177/11786329231187891
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author Samuel B. G. Webster
Sarah E. Neville
Jennifer Nobbs
Jada Ching
Kees van Gool
author_facet Samuel B. G. Webster
Sarah E. Neville
Jennifer Nobbs
Jada Ching
Kees van Gool
author_sort Samuel B. G. Webster
collection DOAJ
description In a bid to improve quality of care, numerous countries have incorporated rewards and penalties into the funding and pricing of hospital services. This paper outlines recent advances in Australia to incorporate financial penalties for hospital acquired complications (HACs) and avoidable hospital readmissions (AHRs) adjustments into the funding of public hospital services. It describes the work in the development of suitable measures to identify episodes, the design of the analytical approach used for risk adjustment and the calculation of the funding implications including dampening effects to account for the level of risk. Using the 2019 to 20 round of data collection, this paper reports on the risk adjustment analysis, incremental costs of HACs and AHRs, and the funding dampening effects, the paper further discusses the implementation strategies undertaken by the Independent Health and Aged Care Pricing Authority (IHACPA) to ensure transparency, stakeholder consultation and engagement. The paper argues that both the technical development and its implementation strategies have been central to making safety and quality an integral and accepted part of Australia’s public hospital funding arrangements.
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spelling doaj.art-b4120d77c89b4eeda6290f58602d25132023-07-27T01:04:41ZengSAGE PublishingHealth Services Insights1178-63292023-07-011610.1177/11786329231187891Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital ServicesSamuel B. G. Webster0Sarah E. Neville1Jennifer Nobbs2Jada Ching3Kees van Gool4Independent Health and Aged Care Pricing Authority, Darlinghurst, NSW, AustraliaIndependent Health and Aged Care Pricing Authority, Darlinghurst, NSW, AustraliaBeamtree, London, UKIndependent Health and Aged Care Pricing Authority, Darlinghurst, NSW, AustraliaMenzies Centre for Health Policy and Economics, The University of Sydney, Sydney, NSW, AustraliaIn a bid to improve quality of care, numerous countries have incorporated rewards and penalties into the funding and pricing of hospital services. This paper outlines recent advances in Australia to incorporate financial penalties for hospital acquired complications (HACs) and avoidable hospital readmissions (AHRs) adjustments into the funding of public hospital services. It describes the work in the development of suitable measures to identify episodes, the design of the analytical approach used for risk adjustment and the calculation of the funding implications including dampening effects to account for the level of risk. Using the 2019 to 20 round of data collection, this paper reports on the risk adjustment analysis, incremental costs of HACs and AHRs, and the funding dampening effects, the paper further discusses the implementation strategies undertaken by the Independent Health and Aged Care Pricing Authority (IHACPA) to ensure transparency, stakeholder consultation and engagement. The paper argues that both the technical development and its implementation strategies have been central to making safety and quality an integral and accepted part of Australia’s public hospital funding arrangements.https://doi.org/10.1177/11786329231187891
spellingShingle Samuel B. G. Webster
Sarah E. Neville
Jennifer Nobbs
Jada Ching
Kees van Gool
Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services
Health Services Insights
title Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services
title_full Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services
title_fullStr Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services
title_full_unstemmed Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services
title_short Incorporating Safety and Quality Measures Into Australia’s Activity-Based Funding of Public Hospital Services
title_sort incorporating safety and quality measures into australia s activity based funding of public hospital services
url https://doi.org/10.1177/11786329231187891
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