ADHC funding variations for NDIS transition in 2017-18
During transition to the National Disability Insurance Scheme (NDIS), Ageing, Disability and Home Care (ADHC) will be making variations to service providers’ funding for specialist disability services.
As people transition to the NDIS during 2017-18 and receive funding according to their plans, ADHC’s funding to service providers will reduce. Variations to funding are made under Clauses 3(b) and 10.1 of the Funding Agreement for Disability Service Providers.
What does this mean for service providers?
Providers need to understand how payments from ADHC will reduce during the transition period in order to manage their business. The most immediate impact for providers will be on cash flows.
Once people have transitioned to the NDIS, service providers will need to manage incoming payments from the National Disability Insurance Agency (NDIA) against the reducing payments from ADHC.
Planned Payments Schedule
Providers will receive a Planned Payments Schedule in May 2017 which forecasts the amount of ADHC funding and variations for NDIS transition for ‘block’ funded clients during 2017-18.
The purpose of the Schedule is to assist providers’ preparations for NDIS transition and to plan for and manage any cash flow changes during 2017-18.
The Schedule is based on information held as at May 2017 and is therefore subject to change. The Schedule does not include people scheduled to transition to the NDIS in 2016/17.
More detailed information has been supplied with the Schedule to help providers to understand the information it contains.
Calculating payment variations
NSW has reached an agreement with the NDIA on the number of people who will transition to the NDIS, how and when this will happen. This has informed how ADHC intends to vary funding paid to service providers in 2017-18.
People have been grouped into three cohorts defined by the services they receive. Each cohort is expected to transition to the NDIS at different rates. The rate at which people are expected to transition determines the funding variation rate.
The information below shows how this has been determined
For Cohort 1 in MDS Service types 1.01, 1.02, 1.04, 1.03 and 1.05 to 1.08
Examples of services are Accommodation and Community High including Large residential centres, group home and small residential centres, hostels, attendant care, in-home support and alternative family placement.
100% of people transition by 31 July 2017.*
*If a significant number of people have not transitioned in July 2017, ADHC will make an assessment on whether a repayment in August will be made so providers can continue to support people who are yet to transition.
For Cohort 2 in MDS Service Types 3.01 to 3.03 and 2.01 to 2.07
Examples of services are Community Access and Support including Learning & life skills, recreation/holiday programs, other community access, therapy, early intervention, behaviour intervention, case management.
75% of people are planned to transition between July and December 2017.
25% of people are planned to transition between January and June 2018.
For Cohort 3 in MDS Service Types 4.01 to 4.05 and 10.01 to 10.26
Examples of services are Respite and Community Care Support Program including centre-based respite, flexible respite, domestic assistance, personal care, meals service, home modifications, transport, case management (excludes assessment)
25% of people are planned to transition between July and December 2017.
75% of people are planned to transition between January and June 2018.
Individually funded services
Payments for individually funded service users are not included in a cohort in the Planned Payments Schedule. They are shown in the Schedule in a separate line called “Individual”.
Funding variations for individually funded services will be made only when a person transitions to the NDIS i.e. when their NDIS support plan is approved by the NDIA.
Funding variations will not be made to non-output services. Funding will continue to be paid in full until 30 June 2018. Non-output services are defined by the following service models:
- 07.01 Support Networks
- 01.01 Individual Advocacy
- 03.01 Combined Information/Advocacy
- 02.01 Information/Referral
- 05.02 Print Disability/Alternative formats
- 02.01 Training and Development
- 04.02 Other Support Services
- 20.01-10.20.09 Community Care Support Program non-output services.
Continuity of support
People who had been receiving state funded specialist disability support, but are not eligible for the NDIS, will receive continuity of support so that they will achieve similar outcomes to those they currently receive.
People who are aged 65 and over will receive supports administered by the Commonwealth via the Department of Health. A Continuity of Support (CoS) program is in place for clients over 65 years in the following FACS district areas: Hunter New England; Nepean and Blue Mountains; Southern New South Wales; Central Coast; Northern Sydney; Western Sydney; and South Western Sydney.
People in other FACS district areas will phase into the Commonwealth CoS program in December 2017 and May 2018.
People who are aged 65 and under will receive supports from the NDIA through Information, Linkages and Capacity Building.
ADHC payments in 2017-18
In July 2017, ADHC will make a payment in full to all 2017-18 providers. Funding variations will then be applied on a monthly basis from August 2017 until all ADHC funding is varied.
Providers will be able to make a claim to the NDIA for payment for each person that transitions in July. ADHC will not seek to recover a portion of the July block funded payment for people funded by the NDIA. Providers can use this portion of ADHC funding paid in July to manage general cash flow changes during the transition.
During 2017-18, ADHC will communicate regularly with providers about details of monthly ADHC payments and funding variations for NDIS transition.
Managing planned versus actual transition rates
ADHC will be monitoring closely the actual rate of people transitioning into the NDIS against expected transition numbers. ADHC can adjust funding variations where there is a significantly slower or faster transition rate of people to the NDIS. This analysis and any potential adjustments will be made on a monthly basis.
For example, if there is a significant number of people have not transitioned as planned in October, then an adjustment will be made to the provider’s November funding variation (the payment reduction will be less). This means that funding variation will be slowed in November to account for the slowed rate of people transitioning in October.
For more information
Service providers should also continue to talk to their local FACS district contract manager to understand how their services will transition.