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ABC News: Independent Pricing Review will ease pressure on providers

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5/03/2018

The ABC has published an article on details of last week’s NDIA Independent Pricing Review, outlining that the NDIA will implement all of the 25 recommendations from the review. It includes comment and analysis from NDS Chief Executive Ken Baker.

The article discusses the findings of the NDIA report - that the recommendations should improve industry margins by two to four per cent; and possibly more for providers supporting clients with complex needs or who live in rural and remote areas.

NDS Chief Executive Ken Baker is quoted in the article, saying that the implementation of the recommendations will offer providers some relief, but not enough.

Ken said, "[The review] does recognise that inadequate NDIS prices have created significant risks for some people in the NDIS of not receiving services. These are people … in rural and remote locations, but also people with high and complex support needs, people from Aboriginal or culturally and linguistically diverse backgrounds and people that are in crisis.”

“The prices at present don't cover the cost of providing support,” he continued. “I think this is a wide-ranging problem and the review hasn't recognised the extent of the problem.”

Ken said deregulation of the market needs to be tested soon. “The risk of market failure is significant, and inadequate prices is a significant contributor to that risk," he said.

"So I think it's a good sign that the board and the management of the NDIA have taken the risk of market failure more seriously than in the past."

Read the full article on the ABC News website.