PHI 80/10

This circular issued by the Private Health Insurance Branch contains information on National Hospital Cost Data Collection (NHCDC) Round 14 (2009-10) for Private and Sameday Hospital Facilities

Page last updated: 18 November 2010

PDF Printable version of 80/10 (PDF 37 KB)

18 November 2010

National Hospital Cost Data Collection (NHCDC) Round 14 (2009-10)
for Private and Sameday Hospital Facilities

The Department of Health and Ageing is pleased to advise that the Round 14 (2009–10) NHCDC will soon begin for public, private and private day hospital facilities and would like to invite all hospitals to participate and nominate training preferences.

The Department will again be working collaboratively with peak bodies to increase the sample size, provide training and support to experienced and new participants and address methodological issues to improve the collection and its relevance to the public, private and day hospital facility sectors.

What is the NHCDC?
The NHCDC has been an annual voluntary data collection, since it was established in 1996. Its purpose is to produce national cost weights for Australian Refined Diagnostic Related Groups (AR-DRG) and other statistics relevant for hospital service costing and planning.

Following the implementation of the National Partnership Agreement (NPA) on Hospital and Health Workforce Reform, under Schedule A, Activity Based Funding, the NHCDC becomes mandatory for public hospitals from Round 14 (2009-10).

How are the results used?
The NHCDC cost weights are heavily relied upon by stakeholders for benchmarking, negotiating cross-border patient flows, third party payments, calculating hospital budgets and for negotiating contracts between insurers and providers.

What are the Benefits for Participating hospitals?
Participants receive a breakdown of their costs, which is useful for:
  • identifying the cost of performing various procedures in their facility;
  • comparing their costs against similar facilities (benchmarking); and
  • planning and managing resources.

Submission of Costing Data
The costing study requires two sources of data to generate cost weights:
  1. Costing Data from the General Ledger; and
  2. Patient Activity Data.
To simplify data submission, information from the General Ledger is required. A data submission template will be provided to assist in the data submission process and all data must be supplied electronically in the Excel file supplied.

If participants agree, the Department will extract patient activity data from the Private Hospital Data Bureau (PHDB) data, which is already supplied to the Department (under the Private Health Insurance Act 2007).

All information provided will remain confidential. Results published at the national level will be reported at the aggregate level and no individual organization’s data will be identifiable. Aggregate results will not be published where they are based on less than five separations or less than three contributing hospitals.

Expression of InterestIf you would like to participate in the Round 14 study, please register your interest to the Department via email to by Thursday, 16 December 2010.

If you have any questions please contact Saro Sambasivam on (02) 6289 4364 or email

If you require further information please telephone: (02) 6289 9853/24 hr answering machine or email the enquiry to
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