# How is the NEP determined?

## How is the NEP determined?

The method uses national classifications for service types, price weights, the National Efficient Price (NEP) that is independently determined by the IHPA, and the level of activity as represented by the National Weighted Activity Unit (NWAU) (i.e. the NEP is the price per NWAU).

## What is Wies funding?

Casemix Funding Under the Hood. Victorian Department of Health’s current acute funding model is called WIES which stands for Weighted Inlier Equivalent Separation.

What are cost weights?

Cost weights are calculated as the ratio of the average cost of all episodes in a diagnosis related group (DRG) to the average cost of all episodes across all DRGs.

What is the national efficient price?

The National Efficient Price for 2019-20 is \$5,134 per National Weighted Activity Unit (NWAU). This is a 1.8 per cent increase in price from the NEP for 2018-19. The efficient price of each public hospital service is calculated by multiplying the NWAU allocated to that service by the NEP.

### What is the abbreviation for national weighted activity unit?

In 2013-14, the NWAU is called NWAU (13), and so on. Independent Hospital Pricing Authority’s National Pricing Model Technical Specifications each financial year explains how the IHPA developed the activity-based funding models for the service streams to be funded.

### What is a weighted activity unit ( nwau )?

A National Weighted Activity Unit (NWAU) is a measure of health service activity expressed as a common unit, against which the National Efficient Price (NEP) is paid.

Is there a NEP weighted activity unit calculator?

National Weighted Activity Unit (NWAU) calculators To assist in applying the annual NEP price weights and adjustments, IHPA has developed versions of the National Weighted Activity Unit (NWAU) calculators described in the National Pricing Model Technical Specification.

What does nwau stand for in health category?

National Weighted Activity Unit. The National Weighted Activity Unit (NWAU) is a measure of health service activity expressed as a common unit against which the national efficient price (NEP) is paid.