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NDIS forcing small community service providers to adapt

Emma McDonald May 19, 2015

2 min read

Director of Paxton-Hall Lawyers, Mr Paxton-Hall says the NDIS requires providers to turn their business models a full 180 degrees – from a ‘funding’ model to a more highly competitive ‘marketing’ model, where care recipients have the power to hire and fire providers.

“Realistically, providers who haven’t changed already are behind the eight ball. They need to scale up, merge or find another way to survive in the new reality of the NDIS,” says Mr Paxton-Hall.

“The NDIS will allow people who consume services to decide who will provide them and market forces will have an impact on what people will pay.

National Disability Services is the Australian peak body for non-government disability services and currently has a membership base that includes 916 organisations who are not-for-profit (NFP) providers in the field of disability support.

But with only a handful of organisations dominating the current market place, niche care providers may find it hard to attract business.

“This is a complete change from the current and long-standing model which sees providers tender for funds from the Government and then distribute those funds through services provided in the community,” says Mr Paxton-Hall.

“From 1 July 2016, those receiving the services will receive the funding personally and choose how they spend it.”

The shift means that smaller providers will need to review their own operations and potentially explore other business options in order to survive.

“As soon as the sector moves to a consumer-directed model anyone satisfying NDIS requirements is able to come into the market place offer their services.”

As well as the requirement for visibility in the market, Mr Paxton-Hall explains that NFP providers will need to implement significant new processes, including payment processing.

“The thing is to be proactive and start thinking about life after NDIS now or risk being left behind.”