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NDIA pricing review

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NDIA pricing review

Many of our members will be aware that the National Disability Insurance Agency (NDIA) recently received McKinsey’s Independent Pricing Review, which sets out a number of recommendations. The full report can be viewed here.

The NDIA posted a progress update on its website on April 5 relating to the implementation of the McKinsey & Co IPR recommendations. The APA is using the valuable member feedback provided to date to prepare our organisational response on behalf of the profession to McKinsey & Co. Further information is available here.

APA response to NDIA pricing review

The APA has serious concerns over several of these recommendations, which we believe will adversely impact the lives of vulnerable Australians who have a range of significant and permanent disabilities, as well as our members’ ability to effectively deliver quality care.

Specifically, our major concerns revolve around the recommendations for:

  • the reform of the price-setting methodology
  • the definition of complexity and the role of the specialist planning teams
  • the way that travel is treated within the scheme

The Australian Physiotherapy Association is vigorously pursuing a delay to the acceptance and implementation of these recommendations, so that more appropriate solutions can be secured. Our CEO Cris Massis has written a letter to the CEO of the NDIA requesting a halt to the implementation until wider consultation with peak bodies has occurred, and we are signatories to the AHPA letter which has been sent to the Minister for Social Services Dan Tehan, the Assistant Minister for Social Services and Disability Services Jan Prentice, and the CEO of the NDIA.

The APA has sent several updates to members over the past week seeking their involvement to communicate the deficiencies of the recommendations. Feedback on the specific deficiencies in these recommendations, participant case studies, and details of the potential unintended consequences (for example participant difficulties in accessing expert services when and where required) can be emailed to policy@australian.physio.

Additionally, the APA has prepared a draft letter for members to customise with their own concerns (or leave as is) that we ask you to send to both your local Federal MP and to Minister Tehan and/or Minister Prentice. This letter is attached here for your immediate action. Contact details for other Federal MPs can be found here.

The APA will update you on this issue as new information arises.

Navigating the Independent Pricing Review

It is 103 pages in total and provides a comprehensive overview of the methodology and outcomes of the pricing review. To help members navigate the review, the following information may be helpful.

The report’s executive summary is on pages 2 -7, with a short summary of the recommendations available on the bottom of page 5. McKinsey and Co’s methodology in respect to how the pricing review was conducted is on page 12.

The recommendations of most interest to APA members are recommendations 17 and 19.

Recommendation 17 on page 79 states: “The NDIA should develop differentiated price level for physical therapy and psychological therapy based on price levels being paid in comparable schemes.” Further information on how the benchmarking methodology was determined can be found on page 27 - 31.

Recommendation 19 on page 83 refers to the travel policy: “The NDIA should align the travel policy for therapy supports to the travel policy for attendant care by removing the $1000 travel cap, allowing providers to charge up to 20 minutes at the hourly rate when travelling between participants.”


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