WA DISABILITY SERVICES SECTOR INDUSTRY PLAN Highlights

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WA DISABILITY SERVICES SECTOR INDUSTRY PLAN Highlights

response to the external drivers that influence and shape the sector. The Industry Plan is an evidence-based strategic data asset that creates a line of sight between organisational and market outcomes and quality of life outcomes for people with disability. It demonstrates cause and effect between the interests of consumers, government policy settings and the sustainable supply of services.

How the Industry Plan was developed

The Industry Plan was developed through extensive engagement within the disability sector and analysis of new and existing data and information. The compressed timeline for the full roll out of the NDIS in WA was considered, as was the experience of other states and territories. Interstate experiences demonstrate the importance of engaging people with disability, their families and carers, as well as service providers in the design of the Scheme and its implementation. It is critical that the significant problems experienced in other jurisdictions are avoided in order to keep the NDIS implementation on track in WA.

Profile of the WA disability sector

To inform the development of the Industry Plan, ACIL Allen developed a separate, stand-alone Industry Profile of the WA disability services sector. It provides a snapshot of the sector’s performance and outlook, as well as its overall strengths, weaknesses, opportunities and any threats to its success.

The Industry Profile is based on the SWOT analysis undertaken on the sector and other reports already developed by ACIL Allen, including the WA Disability Sector Economic Impact Assessment report and the WA Disability Sector Survey report.

The SWOT summary, shown in Figure 2, depicts the overall performance and outlook for the WA disability sector. It provided an important starting point in the development of the Industry Plan. Figure 1 provides a snapshot of key opportunities and challenges identified by the WA Disability Services Sector as the transition to the NDIS occurs.

The SWOT analysis also provided valuable insights for sector organisations in the development of their own strategic plans as the sector moves towards full implementation of the NDIS in WA.

Critical information sourced from the SWOT analysis has informed the Three Strategic Themes of the Industry Plan.

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Figure 1. WA disability services sector opportunities and challenges

Organisation opportunity

• Improved outcomes for people with disability 12%
• Enhanced workforce outcomes 8%
• Merge with other organisations 4%
• Other 13%
• Improved efficiency of services delivery 15%
• Growth and diversification 48%

Organisational challenge

• Quality outcomes for people with disability 3%
• Lack of funding for non-NDIS services 6%
• Other 3%
• Managing expectations of people with disability 4%
• Marketing to people with disability 4%
• Recruiting/retaining a capable workforce 23%
• Services delivery growth and diversification 6%
• Implementation of new systems/processes 19%
• Higher levels of competition 5%
• Financial sustainability 27%

WA Disability Sector opportunity

• Organisational and sector growth 20%
• Improved outcomes for people with disability 22%
• Enhanced workforce outcomes 10%
• Other 13%
• Sector information-sharing and public awareness 7%
• Enhanced sector collaboration and partnerships 17%
• Improved sector efficiency 11%

WA Disability Sector challenge

• Meeting needs of all people with disability 11%

• Other 11%

• Full roll out of the NDIS 12%

• Lack of funding for organisations to remain viable 12%

• Quality outcomes for people with disability 17%

• Sector collaboration and information-sharing 8%

• Levels of bureaucracy 7%

• Financial sustainability of the NDIS 7%

• Sufficient and capable workforce 15%

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Figure 2. WA disability services sector SWOT summary

STRENGTHS

• The WA disability sector has for many years been at the forefront of many of the innovations that are cornerstones of the NDIS, including individualised funding and the use of local area coordinators.
• The sector is largely representative of established organisations that have a long history in delivering reputable and high quality services to people with disability, and that have built strong and long-standing relationships over many years.
• The more populated regional areas of WA are well serviced by the sector’s organisations that provide a diverse mix of services across a range of market segments.

LIMITATIONS

• The financial sustainability of organisations in a new market-driven and highly competitive environment, especially for those already under considerable financial stress.
• Service provision gaps, including in less-populated regional and remote areas, and for niche services, such as communication and aids and equipment.
• A limited understanding of the impact of the NDIS and increased levels of competition, including overly optimistic revenue expectations for many organisations.
• A low level of preparedness for a new customer-orientated environment, which includes the implementation of necessary processes and systems.

OPPORTUNITIES

• Increased levels of sector-wide funding under the NDIS provides prepared organisations with the opportunity to grow and diversify.
• The implementation of new processes and procedures, coupled with increased opportunities for consolidation, driving efficiency improvements in the sector.
• The necessity to meet the needs of all people with disability provides greater opportunities for collaboration and information sharing across the sector.
• The implementation of individualised funding provides people with disability with greater autonomy and decision making power.

THREATS

• Not being able to recruit and retain the magnitude of capable workers required under the NDIS for a variety of roles.

• High cost services that are not sustainable in a self-directed funding environment being withdrawn from the market, including those in regional and niche markets.

• Ensuring quality outcomes for people with disability when there is an increasing focus on sector-wide efficiency improvements.

• Uncertainty on the details of the future WA NDIS model, including the levels of bureaucracy and administration, and future services demand across WA.

• Increased level of competition having a negative affect on the levels of collaboration and information sharing in the sector.

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What is the Industry Plan?

The Industry Plan includes:

AN NDIS SNAPSHOT

Of the experiences of all states and territories with the roll out of the NDIS and any transitional strategies implemented.

A PROFILE OF THE WA DISABILITY SECTOR

Including an overview of its current strengths, limitations, opportunities and threats to its success; the current and future economic impact; and anticipated workforce growth.

THREE STRATEGIC THEMES

Recognising the need for comprehensive systemic and strategic planning to ensure the long-term social and economic gains of the NDIS are fortified.

SEVEN STRATEGIES; 24 ACTIONS AND INITIATIVES

To ensure the sector is well-prepared for the full implementation of the NDIS in WA.

RECOMMENDED NEXT STEPS

To successfully implement the Industry Plan.

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Figure 3. WA Disability Services Sector Industry Plan

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The Industry Plan identifies critical issues that must be addressed to ensure that sector growth from the NDIS is improving service choice, availability, and creating better outcomes for people with disability.

The critical issues include fostering and maintaining a workforce that is productive, inclusive, efficient and mobile and that can be supported by ongoing market intelligence and stewardship that monitors and prevents service failure.

This will require better preparedness, sophistication and financial resilience among service providers, as well as access to more integrated and user-friendly information systems. Greater collaboration with and across government is necessary to provide the leadership required to drive policy and legislative change.

Key Industry Plan Facts & Figures

Figure 4. Industry Plan economic and service projections

WA Disability Services Sector Industry Plan at a Glance

• By 2020: 20,144 Jobs, $2.7b GSP

• Regions up to 444%

• 3 Themes, 7 Strategies, 24 Priority actions

• 39,100 people with disability at full scheme

• Family Support: 91% to $170m

• Individual Support & Coordination: 95% to $286m

• Accommodation Support: 90% to $638m

• Community Focused Supports: 93% to $648m

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2020 Projections

SIGNIFICANT ECONOMIC GROWTH $2.7B contribution to the state’s economic activity (Gross State Product), up from $1.4B in 2015-16

INCOME GROWTH $1.8B in incomes, up from $941M in 2015-16

STRONG JOBS GROWTH 20,144 direct and indirect jobs, up from 10,507

The NDIS will provide a significant opportunity for WA, with potential to trigger large-scale economic growth and job creation in the state. Industry Plan modelling identified that the total economic contribution of the disability sector in WA and the number of jobs generated by the sector will double over the next three years.

By 2020, the disability sector in WA is forecast to generate a total of $2.7 billion worth of economic activity in the state. This includes $1.8 billion in income and the equivalent of 20,144 direct and indirect full-time jobs. Metropolitan and regional areas are all expected to see significant growth.

Figure 5. Projected impact of NDIS

The availability of the NDIS will see increased demand for a wider range of services in WA. Total funding in the state for disability supports and services is expected to increase by 92 per cent to $1.7 billion across four core service types:

• Coordination and individual support up 95 per cent to $286 million

• Community-focused support up 93 per cent to $648 million

• Family support up 91 per cent to $170 million

• Accommodation support up by 90 per cent to $638 million

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Figure 6. Future funding arrangements by service area

• Family support: Current funding $89m, Future funding $170m (91% growth)

• Coordination & individual support: Current funding $147m, Future funding $286m (95% growth)

• Community-focused support: Current funding $336m, Future funding $648m (93% growth)

• Accommodation: Current funding $336m, Future funding $638m (90% growth)

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Workforce and jobs growth

WA needs a contemporary, adaptable and high-performing disability workforce to implement the NDIS effectively.

Figure 7. Employment impact full implementation

• Gross Income: Current $941m, Future $1.802m (+ $862m), Total $2.744m
• Gross Product: Current $1.431m, Future $1.313m (+ $1313m), Total $2.744m
• Total Employment: Current 10.5k, Future 9.6k (+ 9.6k), Total 20.1k
• Direct Employment: Current 6.3k, Future 5.8k (+ 5.8k), Total 12.0k

The WA disability sector has grown significantly over the past decade in line with increased funding directed to the sector. In 2015-16, total expenditure for specialist disability supports and services was $908 million. The sector generated an estimated $1.4 billion in economic activity through $941 million in incomes and the equivalent of 10,507 full-time, direct and indirect jobs. At full scheme, the NDIS is expected to boost employment by more than about 9,600 jobs, including 5,800 new positions directly employed in the disability sector.

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Organisations estimate that their workforces will significantly increase from an average of 125 full time equivalent (FTEs) positions to 150 FTEs in 2019-20. Allied health staff, direct support workers and volunteers are expected to be the most difficult to source.

The Industry Plan identified a range of factors that discourage people from working in regional settings, including:

• Higher wage costs or supports to attract workers
• Lack of training in rural settings
• Perception of limited professional development
• Perception of isolation arising from with working in a rural setting
• Lack of infrastructure (such as communications) in regional and remote towns

Action is required to minimise projected skill shortages so that people with disability can access high-quality supports and services provided by a skilled and contemporary workforce.

The Industry Plan puts forward the sector’s view that a high-quality disability workforce will strengthen safeguards and provide greater choice for people with disability. It outlines the need for targeted attraction and retention initiatives to build a contemporary, adaptable and high-performing workforce. This means recruiting and retaining committed individuals who are able to implement the changes required while maintaining the highest standards of care and support. Education and training requirements need to be considered and supported. Effective transition to the NDIS depends on the capacity of government and the sector to work together to get the right people into the right jobs.

Growing disability services in the regions

The size of WA and the provision of services to regional and remote communities pose unique challenges in the context of implementing the NDIS state-wide. Integrated strategies are required in regional and remote communities to realise improved outcomes for people with disability living outside of the metropolitan area. People with complex needs will need integrated but highly-specialised services wherever they live.

The Industry Plan research found an increasing number of disability service providers intend to provide services across most areas by 2019-20. There is particular interest in expanding daily living services, behaviour support and specialist care services, wellbeing services, episodic coordination of support services and therapy and specialist support services. All regional areas are forecast to experience increases in the number of service providers, with the strongest growth expected in the more-populated regions of Peel, South West, Wheatbelt and Goldfields-Esperance.

Demand for services is expected to increase significantly as more people access services through the NDIS. Individualised funding in the disability sector will increase in all regions.

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The projected increases on current rates of funding range from 70 per cent in the metropolitan area to 444 per cent in the Gascoyne.

• Metropolitan Perth region up 70 per cent to $1.2 billion
• South West up 78 per cent to $139 million
• Great Southern region up 145 per cent to $59 million
• Peel region up 152 per cent to $104 million
• Pilbara region up 194 per cent to $21 million
• Goldfields-Esperance region up 221 per cent to $41 million
• Kimberley region up 224 per cent to $26 million
• Mid-West region up 318 per cent to $60 million
• Wheatbelt region up 355 per cent to $90 million
• Gascoyne region up 444 per cent to $8 million

In regional and remote centres, choice and control need to be considered in the context of the small market for services where often a single provider (or no provider) services a small or remote community. This requires a significant cultural shift in thinking about the delivery of human services.

The Industry Plan recommends targeted workforce planning at a local level, and start-up support in regional and remote areas where service delivery gaps are identified. Consideration also needs to be given to suitable intervention strategies and responses, including a provider of a last resort mechanism in regional and remote areas.

Government will need to take decisive action on the social and economic imperatives that underpin its commitment to people with disability. This includes investment in monitoring and measuring outcomes, and providing for tangible progress actions in disability and across the justice, housing, education and transport sectors.

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Regional Economic Impact

Figure 8. Regional impact of NDIS

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Mid West 2015-16 NDIS 2019-20

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A different marketplace and the need for more integrated services

The Industry Plan identified the transition period as a critical time that will require appropriate stewardship and intervention to ensure market availability, particularly for people needing services in regional and remote communities.

In some parts of the sector, there is limited understanding of the impact of the NDIS and subsequent increased competition. Organisations require a greater understanding of the broader WA disability services market, including operational policies, supply gaps and demand trends, in order to make informed decisions about their future operations.

There is a risk that high cost services may be withdrawn, particularly in thin or remote markets. There are also concerns that the sector will not be able to collectively recruit or retain the amount of skilled, capable staff required to fulfil the promise of the scheme. The Industry Plan research found that in small to medium disability organisations, there is a low level of preparedness for the new customer-orientated environment and the systems and processes to implement it.

The Industry Plan shows that organisations require improvements to their existing strategies, structures, planning, systems, processes and business models to better align with the individualised funding framework and person-centred principles of the NDIS, and to be financially sustainable in a more competitive market.

The research also found that many service providers are optimistic about challenges that present opportunities for them to grow and diversify. The implementation of new processes and procedures are expected to drive efficiencies. The absolute requirement to shift to individualised and person-centred approaches is expected to better support people with disability as well as boost collaboration and information-sharing within the sector.

A more competitive and deregulated market environment will not in itself address market failures. A stronger understanding of the NDIS and the broader market will ensure efforts to build capacity and capability are relevant, functional and efficient. Market failures must be addressed and future policy and legislative changes must be based on ongoing engagement and dialogue between people with disability, service providers and government. There is potential for negative unintended outcomes for people with disability, service providers and government.

Harnessing these opportunities and resolving existing and emerging issues is expected to require significant investment, resourcing and commitment to strengthen community capacity to best support people with disability.

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Activating change

The NDIS should be about providing maximum benefit to people with disability, their families and careers, and building a strong, diverse and sustainable disability services sector.

The Industry Plan recognises the well-documented potential of the NDIS to better meet the needs of people with disability, and that individualised funding provides for greater autonomy and decision-making. It confirms the view that, for many years, WA has been at the forefront of many of the changes underpinning the NDIS, such as individualised funding and the use of local area coordinators. It also confirms that there are service gaps, particularly in less-populated areas.

The NDIS in WA must also interface more effectively with other state-controlled service delivery systems and be designed so that decision-making and accountability are maximised for the people it impacts. Individuals’ needs can be complex. Complementary services from other service delivery systems such as housing, child protection, public transport, education and mental health need to be coordinated.

It is in the interests of people with disability and the broader community to build the business intelligence of disability sector organisations by improving access to data and information pertaining to the NDIS and the broader disability services market. This should include good consumer and market information that is readily accessible.

People with disability will benefit from a more robust marketplace with more options, better customer information, and a service provision environment built on the strength of customer service and value for money. Facilitation of this kind of sustainable marketplace and integrated approach requires a sound knowledge base and appropriate control of the economic and other levers to create the right conditions.

While the NDIS will significantly increase funding for disability care and support, it will not replace nor include the traditional responsibilities of other state-based service delivery systems. A greater level of integration is required across the NDIS and relevant state-based service delivery systems to ensure that there are minimal duplications and gaps in service delivery, and that the provision of social services is cost-effective.

Investment is needed to ensure that the sector can meet the expected increase in consumer demand and respond effectively to its changing nature. Close cooperation, collaboration and partnership between government and key stakeholders - including people with disability and service providers - is needed to ensure that NDIS transition in WA is successful for people with disability, service providers and government.

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Implementation

The Industry Plan maps out an evidence-based plan of action to ensure the WA disability sector is well-prepared for the full introduction of the NDIS.

Three key themes of continued leadership; building capacity and capability; and expanding the knowledge base underpin seven targeted strategies to create higher quality and more efficient services for people with disability in WA.

Twenty-four priority actions and transition initiatives have been identified to ensure the NDIS in WA is effective and delivers on the promise of a better life for people with disability and their families and carers.

Figure 9. The Industry Plan key strategic themes

• Sector Leadership
  • Implement the Industry Plan and drive for necessary policy change
  • Promote greater collaboration with and across Government
  • Address current and emerging market failures
• Building capacity and capability
  • Sector-wide workforce planning
  • Regional Planning
  • Implementation of new processes, systems and strategies
• Expanding knowledge of the customer, the NDIS and the sector
  • Informing service providers and consumers on the impact of a competitive self-directed funding environment
  • Market intelligence – service gaps and consumer trends

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The three key themes recognise the need for comprehensive systemic and strategic planning in order to fortify the long-term social and economic gains of the NDIS. The associated strategies provide a way forward to ensure a smooth transition and effective implementation of the scheme. The strategies are:

1. Understand the NDIS and the disability services market Build the business intelligence of disability sector organisations by improving access to data and information about the NDIS, people with disability and the broader disability services market.
2. Build the capacity and capability of the workforce Develop and implement a state workforce plan for the disability services sector to address capacity and capability requirements.
3. Improve organisational level strategy and infrastructure Develop and improve the organisational level strategy and infrastructure of service providers in the sector.
4. Support regional and remote service delivery Develop regional and remote NDIS plans for each of WA’s nine regional development areas to support local communities that are at risk of market failure under the NDIS.
5. Monitor, prevent and mitigate market failures Develop capacity to ensure that market failure risks are monitored, and that market failures are prevented and mitigated.
6. Ensure a whole-of-government approach to service delivery Develop a holistic, whole-of-government approach to delivering services to people with disability.
7. Ongoing sector leadership Ensure the successful implementation of the NDIS in WA; based on a policy of co-design.

The Industry Plan will support the state to achieve its social and economic goals with regards to the NDIS, including the primary objective of supporting the goals of people with disability and their individual plans.

The Industry Plan provides strategic direction for a comprehensive whole-of-sector, whole-of-state approach to NDIS implementation. It offers evidence-based, practical solutions that can be implemented in collaboration with organisations, the sector and government in support of people with disability. It provides a solid pathway for a smooth transition to a statewide NDIS in WA.

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Contact

Julie Waylen
State Manager, WA
Ph 08 9208 9805
Fax 08 9242 5044
julie.waylen@nds.org.au
www.nds.org.au

12 Lindsay Street
Perth WA 6000

PO Box 184
Northbridge WA 6865

About NDS

National Disability Services (NDS) is Australia’s peak body for non-government disability service organisations. In WA, NDS represents over 100 not-for-profit disability services organisations. It provides services to tens of thousands of people with disability, their families and carers in the state. Services range from home support, respite and therapy to community access, employment and more.

NDS and its members in WA are committed to providing high standards of care and supports and better outcomes for people with disability. It is well recognised that to do this, service providers will have to completely adjust their operations and way in which they provide services to people with disability.

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National Disability Services