Objective To explore the potential impact of partitioning neonatal unit funding into acute and sub-acute/non-acute care (SNAP) types, within a level 6 neonatal unit under the Independent Health and Aged Care Pricing Authority (IHACPA) National Efficient Price (NEP) Funding Model. Methods In a 12-month retrospective cohort from our neonatal unit, we simulated the effect of a care type change to SNAP. We then explored the trend in this activity type over the past 20 years. Results 341 patients with a length of stay greater than 10 days were identified from FY 2021-22. Modelling estimates that between 51 and 175 episodes could have a SNAP opportunity. When moderated, this corresponds with an uplift of between AUD $0.3 - 1.7M, based on 2023-24 value and NEP price. Conclusions Utilisation of a SNAP care-type change has the potential for a considerable uplift in funding for level 6 neonatal units, supporting service sustainability. This may be of use for other units, whilst the neonatal funding model continues to be reviewed and optimized by IHACPA. Implementation in our context, would require changes to both local and state funding management systems, as well as alterations in the Electronic Medical Record (EMR).

The authors have declared no competing interest.

No specific funding was utilised for this research.

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This work was undertaken under the auspices of quality improvement activities for which institutional ethics review is exempted in our organisation. This assessment was made by the Southern Adelaide Local Health Network Research Governance Office, under the South Australia Research Ethics and Governance Policy.

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