The National Disability Insurance Scheme (NDIS) started its roll out in Victoria on 1 July 2016 and will be made available progressively across the state over the next 3 years. The introduction of the NDIS will result in a seismic philosophical shift from a traditional agency led approach to a person centred approach which is led by people with a disability and their nominated individuals.
This shift includes major reform in block funding disability service and equipment providers to an individual fee-for-service arrangements which will have far reaching implications.
For some organisations the new funding arrangements may decrease financial reserves and working capital which in turn may impact on the adequate recruitment or retention of the human capital required to adequately staff programs and services.
In essence, the entirety of your organisations’ operations will need to be distilled down into a “unit cost” with the introduction of a unit price framework for all service types. You unit cost has to be competitive and attractive to your new demographic of “buyers”.
Your costing model will have to adequately cover both the resources, tools and equipment for the actual delivery of your service or program as well as the reverse workflow of all administrative & technical support functions.
It’s my understanding that for some organisations, finances will not be as stable as they were under a block funded model and this is compounded by the variability in the timing of payments which may create cash flow issues.
The NDIS has necessitated a strong commercial incentive – organisations have to make a profit in order to keep their doors open.
In this new climate, the fundamental challenge will be how do you make your organisation sustainable and competitive into the future?
Containing your premium costs arising out of workplace injury will be business critical. By now your implementation will be well underway.
If you haven’t considered the implications of your workers compensation costs as part of this process, feel free to contact me to discuss your needs.
Senior Account Manager