The Independent Health and Aged Care Pricing Authority (IHACPA) has released its second annual Residential Aged Care Pricing Advice for 2024-25, marking a significant step towards a more comprehensive, evidence-based pricing model for the sector.
In a move to address the evolving landscape of aged care services, IHACPA has expanded its cost data collection efforts. This broader approach aims to provide a more nuanced understanding of the expenses associated with delivering care in residential facilities across Australia.
David Tune AO PSM, Chair of the Pricing Authority, expressed satisfaction with the progress, stating, “I am extremely pleased with the agency’s progress in refining its provision of residential aged care pricing and costing advice. This follows IHACPA’s long-standing history of developing evidence-based, data-driven determinations for Australian public hospital services since 2011.”
The enhanced data collection strategy is designed to capture the diversity of service providers and the varying costs of care delivery nationwide. This approach allows IHACPA to refine its pricing framework and methodology continually, ensuring that its advice remains current and reflective of the sector’s realities.
Looking ahead, IHACPA has outlined a 5-year vision for its pricing framework, with plans to review and adjust its methodology annually. This long-term strategy underscores the authority’s commitment to developing a robust and adaptable pricing system for residential aged care.
Collaboration remains a key focus for IHACPA. The authority is working closely with the Department of Health and Aged Care to integrate existing grants, subsidies, and supplements into its future pricing and costing advice. This collaborative effort aims to create a more comprehensive and accurate pricing model.
Tune emphasised the importance of stakeholder engagement, saying, “We are committed to working with our stakeholders and advisory committees to ensure our pricing advice is appropriate and responsive to changes in the aged care sector.”
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
