Physiotherapists funded by the National Disability Insurance Scheme (NDIS) are expressing deep concern over impending pay cuts that threaten their ability to continue operations. The National Disability Insurance Agency (NDIA) has announced these changes with only a 20-day notice period, set to take effect on July 1. This abrupt decision has left many practitioners scrambling to adapt their business models in an impossibly short timeframe.
David Dinca, founder and managing director of Ignite Healthcare, voiced the frustrations of many in the field.
“Most people have done their financial planning, their budgeting for next year, way before the announcements were made, they gave us three weeks of notice and since then, complete silence,”
Dinca explained. He warned that “tens of thousands of professionals across the scheme are going to have to walk away from servicing hundreds of thousands of participants.”
Impact on Physiotherapy Practices
The annual price review by the NDIA has resulted in a $10 reduction in the hourly rate for NDIS-funded physiotherapists, alongside a drastic cut in their travel allowances. This decision has sparked fears of widespread closures among practices that serve vulnerable populations.
Rik Dawson, president of the Australian Physiotherapy Association, expressed grave concerns about the sustainability of these practices under the new financial constraints.
“Physiotherapists aren’t going to have the capacity to see these people, because they just can’t afford to keep their doors open,”
he stated, adding that there was “no indication from the government that they were prepared to cut our rates.”
Challenges for Rural and Remote Areas
The ramifications of these cuts could be particularly severe for patients in rural and remote areas. Ashlee Lance, director of Treehouse Paediatrics, highlighted the challenges faced by her practice.
“We have now a couple of weeks to be able to essentially turn our service model on its head, to be able to remain in business,”
Lance said, noting that her practice might soon have to stop accepting new NDIS patients.
Lance emphasized the inequity that these cuts could exacerbate, particularly for children in remote locations.
“We’ve committed to continuing to see and support the kids that we’re already seeing, but we will be absorbing the cost, and we will be taking a loss,”
she explained, questioning the long-term viability of such an approach.
Official Justification and Response
The NDIA has defended the changes, arguing that they are necessary to ensure fair pricing for NDIS participants. According to their statement,
“These changes ensure NDIS participants, funded by Australian taxpayers, are not paying significantly higher rates for some services than those outside of the NDIS.”
They noted that in some instances, NDIS price limits were up to 68% higher than non-NDIS prices.
The agency also pointed out that the updated travel claiming rules are designed to encourage more efficient scheduling and provide clearer cost expectations for participants. For those in remote areas, therapists can still claim a 40% above-rate price for services, and 50% for very remote areas.
Broader Implications and Next Steps
The sudden implementation of these cuts has sparked a debate about the sustainability of the NDIS funding model and its impact on healthcare providers. The move represents a significant shift in how allied health services are funded under the scheme, raising questions about the future availability of these essential services.
As the July 1 deadline approaches, physiotherapists and allied health professionals are calling for more dialogue and a reconsideration of the cuts. The situation underscores the need for a balanced approach that ensures both the financial viability of service providers and the accessibility of care for NDIS participants.
Moving forward, stakeholders are urging the NDIA to engage in meaningful discussions with healthcare providers to find a sustainable solution that supports both practitioners and patients. The outcome of these discussions could have lasting implications for the NDIS and the broader healthcare landscape in Australia.
