New data reveals “worst year ever” for disability providers

Menchie Khairuddin December 14, 2023

2 min read

The disability sector is at breaking point as providers report their worst year ever, with many struggling to break even, new data shows.

The State of the Sector report, released today by the peak body for non-government disability providers, National Disability Services (NDS), projects an alarming outlook for the future viability of the sector, as more providers opt to exit all together.

The report found:

72 per cent of not-for-profit providers and 67 per cent of for-profit providers said they worry that they won’t be able to provide NDIS services at current prices.
34 per cent of providers made a loss in FY 2022-23. 18 per cent just broke even.
82 per cent of respondents said they had received requests for services that they could not fulfill.
78 per cent reported extreme to moderate difficulty in finding support workers, with availability of allied health professionals ranging from low to non-existent.

This was the highest rate reporting a loss since the survey began collecting financial data in 2016.

NDS CEO Laurie Leigh says the report highlights the urgency in which we need to get pricing right.

“Providers are telling us there is plenty of work around, but either the pricing doesn’t make economic sense or they can’t get the staff,” she said.

“We are already seeing some major providers cease their NDIS services and exit the market altogether, which most importantly, is impacting the people with disability who rely on these to thrive.”

“We welcome the independent pricing mechanism announced in last week’s NDIS Review, but if pricing issues are not addressed quickly, this will result in market failure and many more providers will not survive.”

QLD-based provider, Home Care Nurses Australia CEO Busi Faulkner said she is currently owed over half a million dollars from the NDIS.

According to Leigh, he NDIS must commit to the financial viability of the sector to ensure people with disability are able to access the safe and appropriate services they deserve.

“The current system is like flogging a dead horse and there is a concerning lack of communication and ability to raise complaints within the NDIS system.

“Whilst pricing reforms announced in the NDIS Review are welcome, if these systems and processes don’t improve quickly, the sector won’t be able to move forward.”

Off the back of the NDIS Review announcement last week, NDS is also urgently calling on the government for new measures to attract and retain the workers urgently needed by the sector, which won’t be solved through a review process and needs immediate investment and action.

Menchie Khairuddin

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Menchie Khairuddin is a writer Deputy Content Manager at Akolade and content producer for Third Sector News. She is passionate about social affairs specifically in mixed, multicultural heritage and not-for-profit organisations.