NDIS is creating several opportunities for NDIS providers that extend even beyond the disability sector.
NDIS is implementing consumer directed approach to render service delivery on a scale not seen in the world. Government is now spending around 8 billion dollars a year on disability services. Half of these services are provided directly by the territory governments and State. The remaining services are rendered by non-profit organizations that have contract with governments under block funded arrangements. Under NDIS the annual cost of disability service will tend to grow to $20.6 billion in the next two years of 2019 and 2020. The total market for disability supports will be doubled over the next four years. This market for disability services will grow even faster between three and four fold.
Block funded arrangements will be soon replaced with person directed funding. Each and every participant in the NDIS will have control to purchase the support services that are best suited for their particular needs. Services will be decentralized and individualized with local area coordination of locally based care.
NDIS support will be soon portable. This means that a person taking disability services wants to move to another city or state can easily move with their family and entitlement to the NDIS. The quality of services and the standard of care they receive will move with them to the other city or state. At the end of June around 35,000 participants will be the part of NDIS. According to the bilateral agreements 65,000 people will enter the NDIS in 2016-17, 105,000 in 2017-18 and 95,000 in 2018-19.
GROWTH IN WORKFORCE
As the NDIS participants are growing, the market will need to grow rapidly along with that to keep up the pace of increasing participants. The workforce is also needed to grow to service this growing market and is expected to grow by around 60,000 to 70,000 people on a full time basis and this determines the increase in work opportunities. In South Australia the NDIS will render about 5,000 new full-time jobs.
Companies will also need to build their services according to the individual needs of the participants of NDIS. These companies will need to be highly competitive. This will lead to a high increase in the business opportunities and these opportunities will not be limited to the traditional providers of specialized disability services. The companies from variant industries will also have to serve NDIS participants. Organizations in adjacent sectors like health and aged care, local government and as well as community based services will be motivated to serve NDIS participants.
The administration cost will also be minimized according to National Disability Insurance Agency. The administration costs are projected to be 7% of the total Scheme costs. This can be the best practice for the insurance sector and NDIS has an important role as market steward. The agency will issue a Statement of Opportunities and Intent within next few months including the analysis of supply and demand so that the new and existing suppliers will easily identify market opportunities both nationally and locally.