Independent pricing review

In June 2017, the Board of the National Disability Insurance Agency (NDIA) commissioned an Independent Pricing Review (IPR).

The terms of reference of the IPR were:

  1. To provide recommendations in relation to improved pricing effectiveness, including but not limited to:
      1. national versus regional pricing;
      2. pricing of services with different levels of complexity;
      3. pricing of respite services;
      4. thin and undersupplied markets, particularly in regional and remote areas;
      5. relative provider efficiencies (including overheads);
      6. adequacy of provider returns; and
      7. effectiveness of the Hourly Return approach used to set prices.
  2. To provide recommendations in relation to the potential early deregulation of price in more mature sub-markets and the glide path for the eventual deregulation of price more generally.

The review assessed the NDIA's price control strategy and approach, as well as specific price limits for supports and services that are critical to the in determining the ongoing appropriateness of these price controls and setting a path towards deregulation.

Given the vital role providers play in delivering the Scheme, McKinsey & Company consulted extensively with the sector in developing its recommendations through a series of open provider forums throughout September 2017. In total more than 1,000 individuals contributed to the outcome of the IPR.

The NDIA Board received the final report (the Report) for the IPR in December 2017. The Report is 100 pages in length and contains 25 formal recommendations. The Board will consider the Report at its scheduled meeting at the end of January 2018, with the intent being that the Report and the NDIA's response be published by mid-March at the latest.