{"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":{"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":"**What this is:** A formal instruction from the Minister for Health (Peter Dutton) to the Independent Hospital Pricing Authority (IHPA) — the body that sets prices for public hospital services.\n\n**What it does:**\n- **Orders** the IHPA to work out the costs of running clinical trials in Australian hospitals by 30 June 2015\n- Specifically, they must price a \"refined list of standard items\" (basically a standardised list of medical services and resources used in trials) plus any extra items needed beyond standard hospital care\n- **Requires** the IHPA to report back to the Standing Council on Health after completing this work\n- **Tells** the IHPA what factors to consider when doing this pricing work, including:\n  - What each item actually involves (the \"actual activity\")\n  - Cost-recovery principles (making sure the pricing covers actual costs)\n  - Input from trial sponsors and private hospitals\n\n**Who it affects:**\n- **The IHPA** — must do the costing work\n- **Hospitals running clinical trials** — will eventually get clearer pricing for trial-related services\n- **Clinical trial sponsors** (pharmaceutical companies, research bodies) — get a say in the process\n\n**Why it matters:** Clinical trials are crucial for developing new treatments, but hospitals often struggle to recover the true costs of hosting them. This direction aims to create a transparent, standardised pricing system so hospitals aren't out of pocket, and trials can run more smoothly in Australia."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"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"}}