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Direction to the Independent Hospital Pricing Authority on the performance of its functions under section 226 of the National Health Reform Act 2011 - No 1/2020
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#### 5 Schedule
The schedule to this instrument sets out the direction given to the Pricing Authority on the performance of its functions and exercise of its powers.
Schedule
1 Function
The Pricing Authority, in relation to the performance of its functions under paragraphs 131(1)(h)–(i) and (n) of the Act, is directed to undertake a costing and pricing study into the NFC Program.
2 Matters Pricing Authority to study
In carrying out the study, the Pricing Authority is directed to inquire into and make findings about the following matters:
(a) the direct and indirect cost of providing each NFC service at each specified site for that NFC service;
(b) the aggregate direct and indirect cost of providing each NFC service across all specified sites for that NFC service;
(c) the projected cost of providing all NFC services at all specified sites; and
(d) the existing direct and indirect cost of providing each NFC service for each patient in each specified site for that NFC service.
3 Pricing Authority to recommend options
In carrying out the study, the Pricing Authority must recommend options in respect of the following matters:
(a) whether NFC services, individually and collectively, are more appropriately funded via Activity Based Funding (ABF) or block funding arrangements under the National Health Reform Agreement;
(b) the development and operation of cost models and pricing models for the NFC Program, covering both existing and potential future services delivered under the NFC Program; and
(c) other related matters deemed appropriate by the Pricing Authority.
4 Pricing Authority must have regard to particular matters
In carrying out the study, the Pricing Authority must have regard to the following:
(a) the National Health Reform Agreement;
(b) NFC program cost and activity data supplied by a State or Territory;
(c) any submissions regarding the study to the Pricing Authority from:
(i) the Commonwealth;
(ii) a State or Territory;
(iii) public hospitals;
(iv) other health bodies; and
(v) other parties deemed relevant by the Pricing Authority; and
(d) other related matters deemed appropriate by the Pricing Authority.
5 NFC services and specified sites
For the purposes of section 2, at the time this direction is issued:
(a) a service mentioned in column 1 of an item in the following table is specified as a NFC service; and
(b) a site mentioned in column 2 of the item is specified for the particular NFC service in column 1.
```html
<table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><thead><tr><td colspan="3" style="border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span style="font-size:11pt">Specified </span><span style="font-size:11pt">service</span><span style="font-size:11pt"> and sites</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span style="font-size:11pt">Item</span></p></td><td style="width:45.7%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span style="font-size:11pt">Column 1</span></p><p class="TableHeading"><span style="font-size:11pt">Service</span><span style="font-size:11pt"></span></p></td><td style="width:45.72%; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span style="font-size:11pt">Column 2</span></p><p class="TableHeading"><span style="font-size:11pt">Site</span></p></td></tr></thead><tbody><tr><td style="width:8.58%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">1</span></p></td><td style="width:45.7%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">Islet cell transplantation for the treatment of severe hypoglycaemia unawareness and metabolic instability in </span><span style="font-size:11pt">p</span><span style="font-size:11pt"> with Type-1 diabetes</span></p></td><td style="width:45.72%; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea" style="font-size:11pt"><span>(a) </span><span>Royal Adelaide Hospital, South Australia</span></p><p class="Tablea" style="font-size:11pt"><span>(b) </span><span>St. Vincent’s Hospital, Victoria</span></p><p class="Tablea" style="font-size:11pt"><span>(c) </span><span>Westmead Hospital</span><span>, New South Wales</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">2</span></p></td><td style="width:45.7%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">Paediatric heart transplantation</span></p></td><td style="width:45.72%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea" style="font-size:11pt"><span>(a) </span><span>Royal Children’</span><span>s Hospital</span><span>, Victoria</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">3</span></p></td><td style="width:45.7%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">Paediatric liver transplantation</span></p></td><td style="width:45.72%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea" style="font-size:11pt"><span>(a) </span><span>Queensland Children's Hospita</span><span>l</span><span>, Queensland</span></p><p class="Tablea" style="font-size:11pt"><span>(b) </span><span>Royal Children’s Hospital</span><span>, Victoria</span></p><p class="Tablea" style="font-size:11pt"><span>(c) </span><span>The Sydney Children’s Hospitals</span><span> Netw</span><span>ork (Westmead), New South Wales</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">4</span></p></td><td style="width:45.7%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">Paediatric lung and heart-lung transplantation</span></p></td><td style="width:45.72%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea" style="font-size:11pt"><span>(a) </span><span>Alfred Hospital</span><span>, Victoria</span></p></td></tr><tr><td style="width:8.58%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">5</span></p></td><td style="width:45.7%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span style="font-size:11pt">Pancreas transplantation</span></p></td><td style="width:45.72%; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea" style="font-size:11pt"><span>(a) </span><span>Monash Medical Centre, Victoria</span></p><p class="Tablea" style="font-size:11pt"><span>(b) </span><span>Westmead Ho</span><span>spital</span><span>, New South Wales</span></p></td></tr></tbody></table>
```
6 Other matters
The Pricing Authority is directed to:
(a) commence the study as soon as practicable;
(b) provide updates about the study to the Australian Health Ministers’ Advisory Council and the Standing Council on Health as requested;
(c) provide an interim report of the results of the study and options to the Australian Health Ministers’ Advisory Council, not later than 1 August 2020; and
(d) submit to the Standing Council on Health a final report of the results of the study and options, not later than 31 January 2021.