Learning from the transition to NDIS: perspectives for CEOs in Aged Care
Written by Lauranne Beernaert, Sector Support Coordinator
How to successfully lead my organisation through change and uncertainty? Am I supported by the right Executive Leadership Team? These are the type of questions that a dozen CEOs of Aged Care organisations tackled during a lively CEO Round Table discussion in mid-April 2022.
Facilitated by the former CEO of a disability organisation, this Round Table discussion offered a platform for CEOs to connect and consider the learnings from the shift in policy and service delivery that the disability sector went through into the lead up into the NDIS.
Key areas for consideration and tips:
Company Culture and Change
The volume of changes can be underestimated, which is why it is useful to engage early with the process and the pilot/consultations.
Transitioning to the NDIS required a major mindset shift: from care to outcomes focus, compliance and risk at the forefront, documentation of all supports and hours. Workers were suddenly accountable for how they spent their hours so recording of billables/utilisation was a shift.
Workforce, Awards and Unions
The disability workforce experienced a high turnover rate, with acute staff shortages in all settings and regions. There was a broad casualisation (30% in residential services, 70% in individual supports) which led to poor results. Underpayment was widespread, and Unions were either cooperative and/or militant.
The NDIS and changing goalposts
The NDIS has been a work in progress since the beginning, but people with disabilities and providers have struggled to understand the system. Pricing is based on the cost of a standard in which the NDIA has modelled all aspects of the business (worker, supervision, compliance cost, overhead of 12% and 2% profit margin – Disability Support Worker (DSW) Cost Model).
Fee for service environment results in lower margins. Think about back-office processes (integration of systems and service claims) – sometimes a large investment in technology will be required. Eliminating leakages is key to survival.
The Executive Leadership Team
Do you have the right Executive Leadership Team to support you?
Managing the Board
Several things to consider for Boards: size, succession planning, skills (commercial, clinical governance), who are often highly risk adverse.
- Margins are thinner and survival depends on economies of scale and efficient back-office systems and processes.
- The future is commercial and involves marketing and competition (position, branding).
- You need the right team to succeed, are you up to it personally? Does the ELT have sufficient commercial skills, and do they understand what is about to happen and are they ready to support you?
Contact details of the facilitator:
MD PAUL STIFF CONSULTING PTY LTD