Financial Challenges in NDIS: Balancing Quality Care and Profitability

Latest figures from the National Disability Scheme peak body, released in December 2024, show that nearly two thirds of NDIS providers are not profitable. As service demands rise, so do operational costs, squeezing margins. While the government has introduced some measures, many in the sector believe more changes are needed for long-term viability. Adopting the right technology solution can help providers improve financial sustainability while maintaining quality care.

The Current State of Financial Health in the NDIS Sector

The 2024 State of the Disability Sector Report from peak body National Disability Services (NDS), found that half of the respondents had made a loss in the last financial year, and 13% had broken even. According to a report from okie.com.au, over 40% of NDIS providers may experience financial losses by 2028 unless substantial reforms are made.

Rising service delivery costs, the increasing complexity of care needs, and the administrative burdens faced by providers are contributing to this challenging financial landscape.

Technology: Your Action Plan for Financial Sustainability

Choosing the right technology solution can significantly reduce the risks associated with manual processes and the use of multiple systems.

Many NDIS providers still rely on outdated or disconnected systems, leading to duplication of effort, errors, and an increased risk of non-compliance. These inefficiencies not only affect profitability but also put providers at risk of regulatory penalties.

Platform for Care addresses these issues by automating complex processes such as award interpretation and billing. It ensures compliance by providing accurate data and reducing the likelihood of errors, over-claiming, and payment mistakes. By streamlining administrative tasks, providers can focus their time and resources on what matters most—delivering high-quality care to participants.

Recent Regulatory Changes and How Technology Can Support Providers

In response to the financial strain faced by NDIS providers, the government has introduced several key regulatory changes. Three of the most significant are price reviews and adjustments, reducing red tape, and tracking employee training.

Here's how technology can help providers navigate these changes:

• Price Reviews and Adjustments: NDIS updates pricing to align with service costs, which is crucial for inflation and care cost alignment. Compliance can be challenging, especially with multiple plans. Technology like Platform for Care simplifies pricing changes, ensuring accurate billing and reducing errors.
• Reducing Red Tape: The government aims to simplify regulations by removing administrative burdens. Technology streamlines compliance, tracks updates, and automates reports, reducing non-compliance risks and freeing providers to focus on quality care.
• Tracking Employee Training: The government emphasises staff development. Technology should track qualifications, certificates and skills, and block employees being rostered unless the right skills for the client are met.

By adopting the right technology solutions, NDIS providers can more easily adapt to these recent regulatory changes, ensuring they remain compliant, financially sustainable, and able to deliver the high-quality care that participants need.

Key Factors to Consider When Exploring Technology Solutions in the Market

When selecting the right technology solution, NDIS providers should consider the following factors to ensure they find a cost-effective solution that meets their needs:

• Transition Time and Resources: Assess the time and resources required to implement the system. A smooth transition can reduce disruptions to day-to-day operations.
• Training and Onboarding: Evaluate how easy it is for staff to learn the new system. A user-friendly solution will reduce the time and cost of training.
• Monthly User Fees: Consider the ongoing costs associated with the technology. Compare monthly fees against the expected efficiency gains and savings it will provide.
• Updates and Tailored Features: Ensure the solution offers regular updates and custom features that are specific to the NDIS sector’s regulatory requirements, which can help maintain compliance and operational efficiency.
• Long-Term Value: Look for a solution that provides scalability and adaptability, ensuring it can grow with your business and continue to support your financial sustainability.

By carefully evaluating these factors, decision makers can choose a technology solution that aligns with their budget, and supports long-term operational success.

Over To You

Is your technology solution up to the task? Book a demo today to see how we can help you.