AHPRA is using a cost recovery model for the provision of PIE services.
The federal Department of Finance (DoF) has issued Cost Recovery guidelines1. These guidelines outline which specified government programs should be able to demonstrate their compliance with the cost recovery principles of economic efficiency, design principles, operational principles and efficiency principles.
The use of a cost recovery model is appropriate as PIE is a significant program cost and has a number of stakeholders who may be materially affected by PIE. Also, PIE revenue will be redirected into further development of the PIE platform and future services so the costing model needs to be effective generating the revenue required.
The PIE program is a good example of a non-rivalrous public good, in that one data partners’ use of the service does not diminish the value of the service to other data partners. In such cases, selecting the most appropriate cost recovery model simplifies the service establishment and simplifies engagement with stakeholders.
1Australian Government Cost Recovery Guidelines, accessed 10 Sept 2013.