A survey reveals a devastating impact as a direct result of the new policy, delaying the release of funds to service providers. Eighty percent of those surveyed now say they’re suffering severe financial losses as they struggle to continue offering services.

James Aspland isn’t the sort of person who gives up easily. As Business Development Manager for AXIS Supports Group in the ACT, he’s become accustomed to extracting everything he can from his resources, while putting together plans to support his clients.

And he’s invested in the sector, providing training for TAFE students at the same time as he’s patching together plans incorporating physiotherapy, occupational therapy, speech pathology, and psychology for his clients.

But this is not his ‘happy place’. Not anymore.

Aspland speaks quickly and with energy as he describes the huge problem he’s having as he attempts to cover the funding gap while waiting for the NDIS to reimburse clients for services.

“I couldn’t work out if it was just me or how other service providers were coping. So I decided to ask them in an effort to find out how widespread this problem is,” Aspland says.

He compiled a quick but detailed survey before sending it out to other providers. The results were devastating, both in their unanimity and the picture they painted of even brilliantly managed companies finding themselves quickly plunged into crisis.

More than 87% of businesses say they've been dramatically affected by the cuts, and all of these say the changed funding release periods have also resulted in a major negative impact for clients.

One provider commented that in one instance, transitioning to the new funding release dates is creating significant risks.

“Our participant is now at risk of being left without supports [with] no way of supporting themselves. If the provider continues to maintain the minimum hours of support required there is a shortfall of tens of thousands of dollars every quarter,” they added.

The survey demonstrates how businesses that have made the effort to gain registration as accredited NDIS providers are now being crushed by the very system they’re attempting to work within.

Without the resources of larger providers to fall back on, many are now having to choose between continuing to provide services to clients or cutting back simply so they can stay in business.

_____________________________________

[continued from website]

Survey Results:

The results of the survey spell out the problems, with 90 percent of respondents saying they were having major issues as a result of the new finding periods.

“If only disability-related needs were predictable, periodic funding might be manageable, but they're not,” said one provider. “It has hugely increased the burden of accounting/budgeting on coordinators (who will undoubtedly be blamed if invoices can't be paid), while the hours we're getting from NDIA to do the job are so severely restricted. It's demoralising.”

Only slightly fewer respondents (87 percent) said the changes are having a major effect on their business.

“The time it takes to set up the plan now, with the [longer break for the] funding period. Adding insult to injury is the fact that set-up fees have been cut. We need them more than ever now.”

A similar percentage (87 percent) says the changes are also having a negative impact on clients.

“We have had to turn away clients who don't have enough funding in the first quarter or have had to delay supports. Some clients are waiting to move into SIL because we haven't been able to present the transition plan. Some clients who have major behaviours of concern are being left without immediate support.”

Of even more concern is that a significant number of providers are even considering the possibility of closing, with eight out of ten businesses reporting financial losses.

“With the cut of setup fees and the increased workload of the funding periods, at what point do I decide that it is not worth it?”

While some providers have admitted that not every client may understand how the changes are squeezing the sector, it is definitely having a significant effect.

“While some participants there has been no impact and it is business as usual, however, those who it has impacted negatively it has impacted in a significant way.”

Other comments reflect this concern.

“I think that in theory, spreading the budget out over the year makes sense. Unfortunately, the many problems that it has created means it is a big negative for the business.”

abilityNEWS would like to particularly thank James Aspland for making the effort to carry out and conduct this survey. It demonstrates the professionalism, care, and real concern so many in the sector have for the people they are providing services for. This sector is much more than just a collection of businesses; it really is about organisations and people attempting to provide top-quality services for others.