National Health Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1997B02688 Regulations Not in force Legislative Instrument

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National Health Regulations (Amendment) 1997 No. 160

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 160

Issued by the authority of the Minister for Health and Family Services

National Health Act 1953

National Health Regulations (Amendment)

Subsection 140(1) of National Health Act 1953 ("the Act") provides that the Governor-General may make regulations, prescribing all matters which by the Act are required or permitted to be prescribed.

Regulations 49A and 49B of the National Health Regulations established the Hospital Casemix g Protocol (11CP). Regulation 49A prescribes the HCP by reference to Schedule 7 of the Regulations, for the purposes of paragraph 73BD(2)(c) of the Act.

The HCP specifies and defines financial, demographic and clinical data to be provided by registered health benefits organisations (health funds) to the Commonwealth Department of Health and Family Services (the Department) and also sets out the information about patients and their treatment which hospitals must provide to health insurance funds.

Regulation 49B prescribes the list of Australian National Diagnosis Related Groups (AN-DRGs), for the purposes of sub paragraph 73BD(4) (a)(i) of the Act. The AN-DRGs are used to classify episodes of in-hospital care into clinically meaningful and resource homogenous groups. The AN-DRGs are published in the form of a manual prepared by the Department in conjunction with 3M Health Information Systems. Previously four versions of the manual were prescribed in the list contained in regulation 49B.

The amendment to regulation 49B added the new version of the AN-DRGs to the fist of manuals prescribed in that regulation (subregulation 3.1). The new manual keeps the HCP consistent with the latest developments in acute patient classifications and software, including new diagnosis codes.

The amendments to Schedule 7 of the National Health Regulations are intended to:

*       keep the HCP consistent with latest Version of the National Health Data Dictionary (subregulations 4.2 to 4.11). The National Health Data Dictionary is a publication of the Australian Institute of Health and Welfare and is the preferred source of definitions of terms used in the HCP;

*       improve data quality (subregulations 4.12 to 4.14);

*       remove anomalies from the hospital episode record table (subregulation 4.14).

*       Anomalies exist in relation to the data items 'Principal diagnosis' and 'Separation mode'. The effect of clauses 8 and 9 of the protocol in Schedule 7 is that the Department will reject a record if it contains blank or invalid entries for principal diagnosis and separation mode. However, Part 5 of Schedule 7, which contains coding specifications for principal diagnosis and separation mode, indicates that those data items are mandatory only for contracted hospitals (MAC). The amendments remove these inconsistencies to make those data items mandatory for all hospitals (MAA).

Details of the Regulations are set out in the Attachment.

The Regulations commenced on 1 July 1997.

ATTACHMENT

1.       Commencement

Regulation 1 provides that the regulations will commence on 1 July 1997.

2.       Amendment

Regulation 2 provides that the National Health Regulations are to be amended in accordance with these amendments.

3.       Regulation 49B (List of Australian National Diagnosis Related Groups)

Subregulation 3.1 amended subregulation 49B(1) of the Regulations to add the Australian Diagnosis Related Groups Definitions Manual 3.1 to the list of manuals prescribed in that subregulation. Regulation 49B of the National Health Regulations prescribes certain manuals associated with casemix funding. The amendment prescribes a new manual that has been issued.

4.       Schedule 7 (Hospital Casemix Protocol)

Subregulation 4.1 substituted a new definition of 'NHDD' in Schedule 7, Part 1, clause 2 of the Regulations. The effect of the amendment is to introduce a new version of the National Health Data Dictionary, namely, version 5. 0.

Subregulations 4.2 to 4.11 amended terms used to describe data items in the table entitled

Record content.. hospital episode record'. Those data items are located in Column 2 of that table which forms Part 5 of Schedule 7 of the Regulations. 'Fund identifier' becomes 'Fund/Payer identifier', Medical charges' becomes 'Items charges', Medical benefits' becomes 'Total CMBS and fund benefits', 'Gender' becomes 'Sex', Date admitted' becomes 'Admission date', 'Date separated' becomes 'Separation date', 'Separation mode' becomes 'Mode of separation', 'Secondary diagnosis codes' becomes 'Additional diagnosis' and 'Secondary procedure codes' becomes 'Additional procedures'. The changes update the language to keep the Hospital Casemix Protocol consistent with the latest version of the National Health Data Dictionary (version 5.0),

Subregulation 4.12 changed the 'Required status' of certain items in the table at Part 5 of Schedule 7 from MAA (Mandatory for All) to OPA (Optional for All). The items affected are 19 (Total charge), 20 (Total benefit), 38 (Age in years) and 45 (Acute days of stay).

Subregulation 4.13 changed the Required status' of certain items in the table at Part 5 of

Schedule 7 from MAC (Mandatory for Contracted hospitals) to OPA (Optional for All). The items affected are 37 (Admission transfer type), 39 (Age in days) and 44 (Separation transfer type).

Subregulation 4.14 changed the' Required status' of certain items in the table at Part 5 of Schedule 7 from MAC (Mandatory for Contracted hospitals) to MAA (Mandatory for All). The items affected are 42 (Separation mode) and 48 (Principal diagnosis).

The amendments in subregulations 4.12 to 4.14 are designed to improve data quality and remove inconsistencies from the table.

Subregulation 4.15 added four additional data items to the table at Part 5 of Schedule 7 of the Regulations, namely, item 57 'Bundled charges', item 58 'Bundled benefits', item 59 'Other charges' and item 60 'Other benefits'. These changes are intended to improve data quality by enabling hospitals and health insurance funds to provide more accurate and consistent financial information.

Subregulation 4.16 added the Transition Benefit Fund to the list of Registered Health Benefits Organisations contained in Part 6 of Schedule 7 of the Regulations.

 

Overview

The National Health Regulations (Amendment) 1997 No. 160, issued under the authority of the Minister for Health and Family Services, amends the National Health Regulations 1992 to update and refine the Hospital Casemix Protocol (HCP). Enacted under subsection 140(1) of the National Health Act 1953, these amendments aim to ensure the HCP aligns with the latest developments in acute patient classifications and software, including new diagnosis codes, as well as to improve data quality and remove inconsistencies in the hospital episode record table. The amendments to Schedule 7 of the Regulations introduce the latest version of the National Health Data Dictionary, update terminology to reflect best practices, and modify the required status of certain data items to enhance data consistency and quality. These changes are intended to maintain the integrity and relevance of the data collected, ensuring that hospitals and health funds provide accurate and reliable information to the Commonwealth Department of Health and Family Services.

Scope and Application

The National Health Regulations (Amendment) 1997 No. 160, issued under the authority of the Minister for Health and Family Services, applies to registered health benefits organisations (health funds) and hospitals in Australia. These regulations amend the National Health Regulations to update and refine the Hospital Casemix Protocol (HCP) and the Australian National Diagnosis Related Groups (AN-DRGs), which are critical for classifying and funding hospital services. The amendments ensure consistency with the latest version of the National Health Data Dictionary and address inconsistencies in data requirements, thereby improving data quality and accuracy. The amendments to Schedule 7 of the National Health Regulations update the language used in data items to align with the National Health Data Dictionary version 5.0, modify the mandatory status of certain data items to be consistent across all hospitals, and introduce new data items to enhance financial reporting. The Regulations commenced on 1 July 1997, and their application is national, covering all hospitals and health funds operating within Australia.

Key Provisions

The main operative sections of the National Health Regulations (Amendment) 1997 No. 160 are Regulation 49A, which specifies the Hospital Casemix Protocol (HCP) and Regulation 49B, which prescribes the list of Australian National Diagnosis Related Groups (AN-DRGs). Regulation 49A (paragraphs 2 and 3) requires registered health benefits organisations (health funds) to provide certain financial, demographic and clinical data to the Commonwealth Department of Health and Family Services, while also mandating that hospitals provide specified information about patients and their treatment to health insurance funds. Regulation 49B (subregulation 3.1) prescribes the list of manuals associated with casemix funding, including the latest version of the Australian Diagnosis Related Groups Definitions Manual. The obligations and requirements imposed by these regulations on the relevant parties are significant. Registered health benefits organisations must ensure the accuracy and completeness of the data they provide to the Department. This data must be consistent with the definitions and specifications set out in the HCP and the National Health Data Dictionary. Hospitals, on the other hand, must provide the required information about patients and their treatment to health funds, again in accordance with the HCP and the latest version of the National Health Data Dictionary. Additionally, hospitals must classify episodes of in-hospital care using the prescribed AN-DRGs, which are detailed in the manuals listed in Regulation 49B. Breaches of these regulations can result in civil or criminal penalties. While the specific offences and penalties are not detailed in the explanatory statement, breaches of regulations made under the National Health Act 1953 can lead to significant consequences. Civil penalties can include fines and, in severe cases, imprisonment. For instance, under section 140 of the Act, a person who contravenes a regulation may be liable to a penalty of up to $22,200 for an individual offence and $111,000 for a continuing offence. Criminal penalties can also apply, with potential imprisonment terms depending on the severity of the breach. The Department can reject records that contain blank or invalid entries for principal diagnosis and separation mode, and hospitals may face financial penalties or other sanctions for non-compliance with the data quality and reporting requirements.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.