Australian Hospitals: Funding Models and National Efficient Price

Running head: AUSTRALIAN HOSPITALS
Australian Hospitals
Name of the Student-
Name of the University-
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1AUSTRALIAN HOSPITALS
1. The model prevalent in Australian hospitals
In the article, ‘A Literature Review on Integrating Quality and Safety into
Hospital Pricing Systems’, the authors have presented ideas of the four prominent
funding models that guide the pricing and funding practices (Eagar et al., 2013). The
article throws light on the prominent four models that are in practice. These models
point towards the best practice of pricing, normative pricing, model dependent on
quality structures, model dependent on safety as well as quality. Closer scrutiny will
reveal that the authors mention about the factor that many researchers solely
emphasise upon the inclusion of the model dependent on safety as well as quality. On
a similar note, the hospitals in Australia have adopted the model focussing on the
maintenance of safety as well as quality standards so as to enable proper funding.
The first model, that is, the model that is dependent on the funding and pricing
practices, takes into consideration the aspect of the presence of the best practices. This
is a model that is chiefly based on the various evidences and proofs. Further, the
second idea of normative pricing is dependent on the factor of funding that is
generated by the comprehensive delivery of health care facilities. The penultimate
model depends on the accreditation as well as funding for the private hospitals. The
concluding model is dependent on the funding model that focuses on the maintenance
of the quality as well as safety standards in the hospitals. This model has been chosen
by the Australian hospitals to ensure the regular monitoring of the standards.
Improvement practices related to clinical endeavours are solely focused on the
payment of incentives for the regular maintenance. Studies are emblematic of the fact
that the model has been adopted in the Australian hospitals to aid in the various
processes of reaching at decisions (Trentino, Swain, Burrows, Sprivulis& Daly,

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2013). Checklists are adopted in Australian hospitals to monitor the maintenance of
safety, pricing and the pricing strategies (Tang, Ranmuthugala& Cunningham, 2014).
In the Australian health sector, it is quite crucial to implement and monitor the strict
maintenance of safety as well as quality to delete the various impediments. Studies
also unearth that the funding processes in the private Australian hospitals had
accentuated due to the regular and vigilant maintenance of quality measures during
cases of emergency (Russell &Dawda 2014). The Committees of Accreditation have
strived to secure the required standards (Mumford et al., 2013). To ensure flow of
funds from commonwealth, Australian hospitals have incorporated measures in
connection with safety and quality (Gardner, Mitchell, Beckingham&Fasugba, 2014).
Closer analysis will present that the Broadcasting System related to Safety Alert keeps
ands maintains a closer track over the safety as well as quality pricing (Lawton,
Taylor, Clay-Williams, & Braithwaite 2014). The adoption of this model helps in the
implementation and development of the measures that are connected to the sustenance
of safety as well as quality pricing tools.
1. Incentives and their relation to the National Efficient Price
In the Australian scenario, NEP is seen to determine as well as adjudge the total
incentive and the price that are to be distributed amongst the hospitals ("National Efficient
Price Determination | IHPA", 2019). Depending on various yardsticks, the NEP determines
and distributes the benefits and incentives. Given their objectives, it needs to be elaborated
that the NEP will readily engage in the distribution of funds and incentives, with a view to
uplift the deprived section of the population in the country. Therefore, it is important to throw
light on this possible aspect of NEP, which can disburse required funds to the hospitals for
the improvement of the health facilities. Owing to their immense focus on the health of the