Therapy services are crucial supports for many NDIS participants. The NDIA, through the Pricing Reference Group, will undertake a review of the price control arrangements and other market settings for therapy services in the NDIS.
In June 2017, McKinsey & Company were engaged by the Board of the NDIA to undertake an Independent Pricing Review (IPR). The Review, delivered to the NDIA on 14 February 2018, contained 25 recommendations, five of which directly related to therapy services and which have since been addressed.
The NDIA Board has been listening closely to the concerns raised by providers of therapy services regarding whether the proposed arrangements were appropriate for remote and very remote areas and for all types of therapy.
A new review of existing price controls and other market settings under the NDIS relating to therapy services will involve research and consultation with industry, community and government stakeholders to clarify the approach.
In particular, the Review will:
- examine the nature of the market for therapy services, including the extent to which the market is made up of distinct segments, including in thin and undersupplied markets and in regional and remote areas;
- undertake detailed benchmarking on both therapy supports and therapy assistants versus both relevant comparable schemes and private mainstream markets; and
- examine the extent of competition in the market for therapy services, and whether segments of the therapy services market are ready to trial price deregulation.
The Review will make recommendations on:
- the appropriate price control arrangements for therapy services in the NDIS;
- options to encourage the development of innovative support offerings by providers of therapy services in the NDIS; and
- market interventions, other than price limits, that may have positive impacts on the market for therapy services in the NDIS.
The Review will commence in December 2018 and deliver recommendations to the NDIA's Pricing Reference Group in the Third Quarter of 2018-19, for implementation in the Fourth Quarter of 2018-19.
- December 2018 - January 2019 Consultation with stakeholders
- Third quarter 2018-19 Consideration of Recommendations by Pricing Reference Group and Board
- Fourth Quarter 2018-19 - Implementation of new arrangements