New activity-based funding model for Australian private sector overnight rehabilitation cases: the rehabilitation Australian National Sub-Acute and Non-Acute Patient (AN-SNAP) model
Brian Hanning A B and Nicolle Predl AA Australian Health Service Alliance (AHSA), 979 Burke Road, Camberwell, Vic. 3124, Australia. Email: nicolle@ahsa.com.au
B Corresponding author. Email: brian@ahsa.com.au
Australian Health Review 39(4) 365-369 https://doi.org/10.1071/AH14050
Submitted: 17 March 2014 Accepted: 19 December 2014 Published: 2 March 2015
Abstract
Traditional overnight rehabilitation payment models in the private sector are not based on a rigorous classification system and vary greatly between contracts with no consideration of patient complexity. The payment rates are not based on relative cost and the length-of-stay (LOS) point at which a reduced rate applies (step downs) varies markedly. The rehabilitation Australian National Sub-Acute and Non-Acute Patient (AN-SNAP) model (RAM), which has been in place for over 2 years in some private hospitals, bases payment on a rigorous classification system, relative cost and industry LOS. RAM is in the process of being rolled out more widely. This paper compares and contrasts RAM with traditional overnight rehabilitation payment models. It considers the advantages of RAM for hospitals and Australian Health Service Alliance. It also considers payment model changes in the context of maintaining industry consistency with Electronic Claims Lodgement and Information Processing System Environment (ECLIPSE) and health reform generally.
What is known about this topic? The Australian Health Service Alliance is unaware of any recent studies comparing and contrasting current Australian private sector rehabilitation models with AN-SNAP-based models.
What does this paper add? This paper outlines the advantages of an AN-SNAP payment model with regard to paying for services in relation to relative cost and avoiding perverse incentives in relation to rehabilitation patient admission and LOS.
What are the implications for practitioners? Basing private sector rehabilitation payment models on AN-SNAP can address deficiencies of traditional payment models.
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