{"id":"F2015L00076","name":"Direction to the Independent Hospital Pricing Authority on the performance of its functions under section 226 of the National Health Reform Act 2011 - No. 1/2014","slug":"direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":438229,"registerId":"F2015L00076-fast-fetch-1775954736017","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Direction to the Independent Hospital Pricing Authority on the performance of its functions under section 226 of the National Health Reform Act 2011 - No. 1/2014","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 20.2\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\nDirection to the Independent Hospital Pricing Authority on the performance of its functions under section 226 of the National Health Reform Act 2011 - No. 1/2014\n\n \n\n \n\nI, PETER DUTTON, Minister for Health, acting under subsection 226(1) of the National Health Reform Act 2011 (the Act), having consulted with the Standing Council on Health, DIRECT that the Independent Hospital Pricing Authority make the determination set out in Item 1 of the Schedule to this instrument, and have regard to the matters set out in Item 2 of the Schedule to this instrument.\n\n \n\n \n\n \n\n \n\n \n\nDated:        19th                     December 2014\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPETER DUTTON\n\nMinister for Health\n\n \n\n \n\n#### Contents\n\n \n\n \n\nPART 1 PRELIMINARY 3\n\n \n\n1 Name of Direction 3\n\n2. Commencement 3\n\n3. Authority 3\n\n4. Definition 3\n\n5. Schedule 3\n\n \n\n \n\n \n\nSchedule    4\n\n \n\nPart 1 Preliminary\n\n \n\n1.                    Name of Direction\n\n\n \n\nThis Instrument is the Direction to the Independent Hospital Pricing Authority on the performance of its functions under section 226 of the National Health Reform Act 2011 - No. 1/2014.\n\n \n\n## 2.                      Commencement\n\n \n\nThis Direction takes effect on the day after it is registered on the Federal Register of Legislative Instruments.\n\n \n\n## 3.                      Authority\n\n \n\nThis Direction is made under the National Health Reform Act 2011.\n\n \n\n## 4.                      Definition\n\n \n\nIn this Direction:\n\nrefined list of standard items means the list provided by the Department of Health, having received it from the National Health and Medical Research Council, based on list devised in 2012 that was subsequently reviewed in 2014.\n\n \n\n## 5.                      Schedule\n\n \n\nThe Schedule to this Instrument describes the direction given to the Independent Hospital Pricing Authority on the performance of its functions.  \n\n \n\nSchedule  \n\n \n\n1. Functions\n\n\n \n\n(i)                 By 30 June 2015, the Independent Hospital Pricing Authority, in relation to its function under s. 131(1)(a) of the Act must determine the costs for the refined list of items and any other items (above those costs required for standard care), as determined necessary by the Independent Hospital Pricing Authority, associated with conducting clinical trials in Australia.\n\n \n\n(ii)               The Independent Hospital Pricing Authority must provide a report on its performance of the activity referred to in Item 1(i) of this Direction to the first meeting of the Standing Council on Health after 30 June 2015.\n\n \n\n \n\n2.      Matters the Independent Hospital Pricing Authority is to have regard to\n\n \n\n(i)                 In performing the activity described in Item 1 of this Schedule, the Independent Hospital Pricing Authority must have regard to the matters set out in subsection 131(3) of the Act.\n\n \n\n(ii)               In addition, in relation to performing the activity described in Item 1 of this Schedule, the Independent Hospital Pricing Authority may, so far as the Act permits, have regard to the following matters:\n\n \n\n(a)   the actual activity of each item;\n\n(b)   principles of cost-recovery; and\n\n(c)   submissions from relevant parties, including trial sponsors and private hospitals.\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"This Direction adds a specific, time‑bound task to IHPA’s existing pricing functions: to determine costs for the \"refined list\" and any additional items related to clinical trials and to report to the Standing Council on Health (Schedule Items 1(i)-(ii)). It therefore extends IHPA’s operational focus to include clinical‑trial‑related hospital costings, sets a firm deadline, and prescribes the matters IHPA must or may have regard to (Definition s.4; Schedule Item 2(i)-(ii)), tightening and specifying the scope of its s.131(1)(a) role."},"complexity_factors":["Statutory hook: direction made under s.226 of the National Health Reform Act 2011 (Authority clause)","Specific functional trigger: invokes IHPA’s function under s.131(1)(a) to determine costs (Schedule Item 1(i))","Deadline and reporting: requirement to complete determinations and report to Standing Council on Health by 30 June 2015 (Schedule Item 1(i)-(ii))","Defined external input: \"refined list of standard items\" is a defined term tying the task to material from the Department of Health and the NHMRC (Definition, s.4)","\"Any other items\" and discretion: IHPA may add items it considers necessary, introducing discretionary scope (Schedule Item 1(i))","Constraint language: IHPA \"must have regard to\" s.131(3) and \"may, so far as the Act permits, have regard to\" additional matters — creates interplay between mandatory and permissive considerations (Schedule Item 2(i)-(ii))","Multiple policy factors to weigh: includes statutory pricing criteria, cost‑recovery principles and stakeholder submissions (Schedule Item 2(ii)(a)-(c)), increasing analytic and compliance tasks","Commencement timing: takes effect on registration on the Federal Register (Commencement clause), compressing implementation timelines"],"plain_english_summary":"This Direction orders the Independent Hospital Pricing Authority (IHPA) to set hospital costings for a defined \"refined list\" of items and any additional items it deems necessary that are associated with conducting clinical trials in Australia, and to report its work to the Standing Council on Health by 30 June 2015. The IHPA must follow the Act’s pricing criteria and may consider cost‑recovery principles and submissions from trial sponsors and private hospitals. The result affects hospitals, trial sponsors and payers by shaping the prices used for clinical‑trial activity."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a specific, time-bound ministerial direction made under existing powers in the National Health Reform Act 2011. It does not expand the scope of that Act; rather, it exercises a specific function (section 226) to direct the IHPA on how to perform its existing pricing functions (section 131). The scope remains tightly focused on clinical trial costing as originally contemplated by the Act's framework for hospital pricing."},"complexity_factors":["Very short document (approximately 1.5 pages of substantive content)","Only 1 defined term ('refined list of standard items')","Simple structure: preliminary provisions plus a 2-item schedule","Minimal cross-referencing (only references to sections 226(1) and 131 of the parent Act)","No nested conditions or exceptions — straightforward directive format","Clear, imperative language ('must determine', 'must provide', 'must have regard to')"],"plain_english_summary":"The Minister for Health directs the Independent Hospital Pricing Authority to calculate and price the hospital costs of running clinical trials by 30 June 2015, producing a refined standard list of trial-related services (and any extra items) and reporting to the Standing Council on Health. IHPA must aim for cost recovery, base prices on actual activity, and take input from trial sponsors and private hospitals. This creates transparent, standardised pricing so hospitals can recoup trial costs and trials run more smoothly."}},"importantCases":[],"_links":{"self":"/api/acts/direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se","history":"/api/acts/direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se/history","analysis":"/api/acts/direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se/analysis","conflicts":"/api/acts/direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se/conflicts","importantCases":"/api/acts/direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se/important-cases","documents":"/api/acts/direction-to-the-independent-hospital-pricing-authority-on-the-performance-of-its-functions-under-se/documents"}}