This report details a new peer grouping for Australian public and private hospitals.

Summary:
This publication details a new peer grouping for Australian public and private hospitals. It has been developed by the Australian Institute of Health and Welfare (AIHW) in consultation with a wide range of stakeholders in Australia's public and private hospital sectors.
Why peer group hospitals?
Hospital peer groupings define groups of similar hospitals based on shared characteristics, and allow a better understanding of the organisation and provision of hospital services. Also, when presenting and analysing health performance and other information, it is important that valid comparisons are able to be made. For hospitals, a peer grouping supports comparisons that reflect the purpose, resources and role of each hospital.
Why have a new peer grouping?
The AIHW's original peer grouping was developed in 1999 for public hospitals only and was mainly based on the workload of the hospital (measured as admitted patient separations or acute weighted separations) and the hospital's remoteness area. Peer groups for some hospitals were based on their specialised roles as reported by states and territories.
The methodology used to group hospitals had not been updated since its original development, and changes in hospital workloads and work practices highlighted the need for a review. For example, increases in hospital activity resulted in hospitals moving up the size-based peer groups, making some of the groups too large and heterogeneous.