‘Living not existing’NDIS Opportunities & Challenges

“Disruptive Innovation”• massive service system change

• Victorian NDIS rollout now announced

• Impending changes to HACC with transfer of younger people to NDIS

• NDIS will double investment in disability in Victoria, and expand provision of disability services to over 100,000 residents

“Disruptive Innovation”Transition to a nationally run schemeNDIS characterised by: • Choice and Control for participants• Emphasis on early intervention and lifetime

approach to a person’s needs• commitment to a social insurance approach, within

the framework of a National Disability Strategy with its emphasis on community inclusion.

Disability Support System

Victorian NDIS rollout schedule

Still awaiting …

• Victorian NDIS operational plan by December 2015

• Clarity re accommodation issues by December 2015

• Safeguards and QA Framework to be agreed by early 2016

• Results of LAC tender• ILC - Information Linkages & Capacity Building -

commissioning details

Still awaiting …

• Greater clarity about how mental health services will fit within NDIS

• Roll out of a national disability workforce plan • More detail of how the NDIA will address areas of

thin markets, and the extent of market regulation

Coming Up

Victorian government providing leadership, with new NDIS Taskforce

NDS is rolling out an NDIS Transition program of information and capacity building

Government program of information and transition support for communities

Challenges for local government

Local governments face both challenges and opportunities, in regard to their roles as:• Providers of direct services for people with disabilities• Providers of ‘Information, Linkages and Capacity

Building’ type services• Local service coordination related roles

NDIS context for providers

Organisational preparation• Assessment of skills and

capabilities and understanding of strengths and weaknesses

• Focus on strong local community connections

• Organisational efficiency improvements through financial modelling, cost control, and workplace innovation

More say for participants• greater diversity

in services purchased• greater flexibility in timing

and type of supports• less predicable patterns of

demand

Competition increasing• clients as ‘customers’ &

investment in relationship management processes

• New market entrants & some participants self managing supports

• cherry-picking of profitable services?

• Increased demand for services driving workforce growth and competition for high quality staff

NDIA prices• Lean pricing particularly

loadings for supervision and non-client facing time

• L&D squeezed• Funding in arrears after

services have been delivered

NDIS Pricing StructureNDIA Efficient Price - standard Workforce Conversions

Direct Support Staff Pay Rate $21.85

Annual Leave – including loading. $2.17($1.89 without loading).

20 days per FTE

Personal Leave $0.43 5 days per FTE

Long Service Leave Allowance $0.07 0.85 days per FTE

Non-client facing rate (95% Client facing time).

$1.29 13 days per FTE

Total direct support staff rate. $25.82

WorkCover & super $3.49

Program mgt & admin $2.43

Corporate overhead + Profit Margin $4.97

Total costs $36.70

For Service Providers• NDIS presents large opportunities for growth, but hard decisions about

the direction of growth.

• In making decisions, service providers need to consider:– internal factors: their purpose, skills and capacity–external factors: competition, workforce availability, consumer

demand–policy settings: prices, regulation, the NDIS implementation plan

ILC: Information, Linkages, Capacity Building

ILC is for all people with a disability and their families, including but not limited to NDIS participants

Currently, limited information about what and how ILC will be funded.

5 streams of services:• Information, Linkages and Referrals• Capacity building for mainstream

services• Community awareness and capacity

building• Individual capacity building• Local area Coordination

5 proposed funding priority areas:

• Specialist or expert delivery• Cohort focused delivery• Multi-regional supports• Remote/rural solutions• Delivery by people with disability for

people with disability

Local CommunitiesOpportunity for local governments to play an active role in shaping NDIS transition within their communities

Supporting smooth transition for: - People with disabilities and families; Workers; Service

providers; Mainstream and other services

Continuing to support social inclusion opportunities

The Scheme’s impact: one story

Sarah FordycePolicy Manager

NDS Victoria

‘The Scheme has changed my life: it’s saved my marriage and my family. It’s providing my kids with the supports they need so they wake up happy in the morning, not throwing tantrums. I’ve been able to return to work and my wife has recently been able to as well. The way things are going, within 5 years, we expect to be able to start a business employing 10 people, knowing my children are going to be OK.’

Barwon participants’ Dad