JOINT STATEMENT: PRICING FOR A SUSTAINABLE QUALITY DRIVEN SECTOR
DIA joins disability peak bodies (Ability First, AHPA, Alliance 20 and NDS) to call on the NDIA to urgently increase pricing across the sector. The 2023-2024 Annual Pricing Review comes at a critical time for National Disability Insurance Scheme (NDIS) participants and providers. The provider sector is as diverse as the people with disability it supports.
As sector peak bodies, our members are large and small, registered and unregistered, delivering services across all of Australia, or in their local communities. They provide essential supports that people with disability rely on every day, to remain healthy and actively participate in their communities.
However, providers of quality and responsive services are at breaking point. Providers are reporting their worst financial year ever. More organisations are running a deficit and far fewer are breaking even. More providers are concerned that they will not be able to provide support at current NDIS prices.
We call on the NDIA and government to take urgent and immediate action to increase pricing across the sector. The 2023-2024 Annual Pricing Review is an opportunity to establish prices that ensure security and continuity of supports for participants, incentivise quality and link to the objectives of the NDIS. Wage increases and CPI along with overhead costs such as workers compensation and general insurance, non-billable training and costs of compliance for registered providers must all be recognised.
The joint statement: pricing for a sustainable quality driven sector, includes five key actions we are urging the NDIA to take:
1. Pricing must support sector sustainability.
Action: CPI and Wage inflation must be pass on in full across all supports.
2. Pricing must send a message to providers to stay the course and invest in the future.
Action: Increase prices across disability support worker, therapy and intermediary supports by at least 10%. Further, Intermediary providers should receive an additional increase to ensure continuity of support while government are considering the wide-reaching recommendations made by the NDIS Review
3. Pricing must drive quality not just numbers.
Action: Implement a registered provider supplement paid outside of participant plans to ensure that participants using registered providers are not disadvantaged.
4. A new approach to pricing is needed.
Action: An independent pricing approach must be implemented that provides fairer, best practice pricing in the NDIS. A scheme of this size and importance deserves no less.
5. The sector needs support to respond to the multiple reforms expected over the next five years.
Action: We all want to the NDIS to reach its potential, to continue to change the lives of people with disability, but we want it to be better. Funding for transformation is needed to support the wholesale structural adjustments that the sector will undergo.
On the release of the joint statement DIA, CEO Mr Jess Harper said:
“This historic joint statement from the provider peak bodies across the sector illustrates that so many providers are struggling within the existing pricing structure. For Support Coordination and Plan Management it has been four years without an increase to the price limits over a time where Australia has experienced sharp inflation and increase to the cost of business with no ability to pass these on to the consumer like any other Australian business.
Currently there is an active incentive for providers to reduce quality and service to remain viable. Peak bodies like DIA are actively pushing against this with a view that all participants deserve a quality, innovative and person centered support.
The is a much needed discussion at the moment around price gouging and overcharging by some providers. Unlike much of the discussion, Intermediary supports (Support Coordination and Plan Management) in the NDIS are well below other Government services systems like Aged Care, Vehicle Accident Schemes and Workplace Safety Schemes.”
Media inquiries can be directed to
Mr Jess Harper
Chief Executive Office
Disability Intermediaries Australia
e. media@intermediaries.org.au
DIA is a members-based organisation. We are only able to do the work that we do because of the ongoing support of our members. Thank you to all DIA members that continue to support the work we do. If you’re a provider delivering Support Coordination or Plan Management are not yet a member, you should consider joining. Click here to join from our homepage.