The Health Department's draft Private National Efficient Price (PNEP) fails to address the reason for its creation - the viability crisis impacting hospitals.
It reneges on a floor price with annual indexation, mistakes costs for prices, fails to account for casemix or regionality, and places all the cost burden for innovation, quality and safety, choice and access on hospitals with zero responsibility on health insurers to recognise, let alone fund these essential requirements.
The Department must get back to the purpose of this exercise - addressing the viability and investability crisis impacting private hospitals - or risk accelerating more hospital closures.
Astonishingly, after 18 months of government deliberations the draft PNEP fails to address the crisis at all.
The APHA's full submission is available at: APHA response to the draft PNEP.
Previous Submissions:
31/7/2025 Mental Health and Suicide Prevention Agreement Review