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NDS releases DES 2018 funding model simulator

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To assist our membership, NDS has developed a funding model simulator for the new Disability Employment Services (DES) provider fee structure to be adopted from mid-2018.

The simulator seeks to demonstrate possible impacts on an organisation's funding using the new risk-adjusted funding model and the five participant funding levels.The simulator will allow projections to be determined using an organisation's current caseload data, or possible caseloads that organisations might seek to support under the new DES contract.There are some important qualifiers to be considered when using the simulator. The simulator is based on projections that might result from any possible caseload figure entered. The simplest comparison for an organisation would be to model an equivalent of their annual caseload to examine the likely difference in the organisation’s funding income across a 12-month period under the two funding models. The simulator will produce the total fee payments for both models based on caseload data entered in the 2017 program stream sheets. The new fee outcome structure can be aligned with any caseload an organisation might choose to enter. Job placement fees will be used to project four week outcomes and the previous 52-week outcome indicator will be used to model the impact of the new 52-week outcome fee.An organisation can simulate caseloads for the five new funding levels in an Employment and Support Allowance (ESA) by entering any number of participants, but this figure would then reflect the estimated funding level proportions as projected by Department of Social Services (DSS) in the DES industry information paper. The number of participants achieving employment outcomes can also be varied. The 2018 program stream sheets demonstrate the effect of the new fee structure, including fees paid for employment assistance, the various types of outcomes payments and total funding received. While the funding model simulator might demonstrate projected funding income under the new model, it is dependent on the caseload figures entered and funding level assumptions made by DSS. Organisation caseloads will not be known until the results of the Grant Application process, and the funding levels assigned to individual participants may differ from the projections identified in the industry information paper. We hope that DES providers find the simulator useful and that it assists them to successfully navigate the DES grant application process.

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