Provider performance, sustainability & the NDIS
Now, more than ever, the NDIA have released sufficient data, detail and analysis to truly understand your performance.
The 2020 Annual Price review publication, and the the NDIA Disability Worker Cost Model 2020-21 provide a suite of data that all providers should be leveraging to optimise performance.
Health Q Consulting provides consulting support to disability providers to assist in optimising their financial performance and strategic outcomes. Our experience and expertise can provide you with the insights you need to achieve your goals. Disability service providers operating in with the NDIS need to adopt new and different business models to survive. Commercial thinking is required, with new skillsets required at the Board, executive and operational levels. This isn’t always easy, but we’re happy to help.
The NDIS provides all Australians under the age of 65 who have a permanent and significant disability with the reasonable and necessary supports they need to enjoy an ordinary life. At full scale, the NDIS will provide more than $22 billion in funding every year to an estimated 500,000 people.
All states and territories have now joined the NDIS (as of 1 July 2020), seven years after it commenced rollout (1 July 2013).
As at 30 June 2020, 392,000 participants have participated in the NDIS and $16.1 billion in payments were made in 2019/20 financial year at an average of $51,000 per participant. In the past 12 months participant numbers have grown by 37%, and will continue to grow as more users take up the funding. Similarly, provider registration has also steadily increased, and there are now 14,882 providers delivering services under the NDIS to those with a Plan.
Specialist Disability Accommodation (SDA) is a crucial component of the NDIS. From an economic perspective, the SDA-funding is designed to stimulate the market to supply specialist housing designed for people with significant functional impairment and/or complex needs. In 2011 the Productivity Commission estimated 6.1% of NDIS participants would require SDA. Currently 3.8% of NDIS participants (30 June 2020) have SDA in their plans (compared to 6.2% of participants with SIL in their NDIS plan).
There is now more data than ever to assist disability service providers optimise their business structures and costs. The recently released "Disability Support Worker Cost Model 2020-21" provides a wealth of information to allow providers to benchmark their financial performance. Health Q Consulting have developed a cost benchmarking model to pinpoint opportunities for improvement and provide meaningful insight to the Board and executive. Our most recent project identified material cost savings in supervision and overhead, while also identifying revenue and billing improvement opportunities.
Heath Q Consulting is a disability consulting specialist based in Adelaide. We work nationally to support disability service providers to:
Develop, review and assess their commercial NDIS strategies
Benchmark financial performance against the Disability Support Worker Cost Model 2020-21
Determine unit costs and conduct margin analysis
Review pricing guide optimisation and develop pricing strategies
Develop housing strategies, register SDA dwellings and optimise SDA revenues
Improve financial sustainability
Manage NDIS quality and safeguarding compliance and risks
We have supported and worked for multiple NDIS disability providers transitioning to the NDIS. Give us a call at Health Q Consulting to learn more about how we can help your business thrive.
Health Q Consulting