The National Disability Insurance Scheme (NDIS) has revolutionised the way people with disabilities in Australia are supported. Through its funding model focused on the person, participants can draw support from a range of registered and unregistered providers in pursuit of their personal goals and outcomes. However, a common question persists: How do NDIS providers make their money?
Whether you are a consumer who desires openness or a new business entering the disability support sector, you should be aware of how NDIS funds operate and how providers are paid. In this article, we break down the NDIS payment model, how providers make money, and how an NDIS provider in Geelong can survive sustainably while delivering quality care.
Understanding the NDIS Business Model
The NDIS is designed to pay participants directly, giving them the autonomy to choose the supports and services they need. The funding does not go to providers directly—it is paid on approved plans and categories, such as Core Supports, Capacity Building, and Capital Supports.
So, how do NDIS providers earn money? Easy—that they deliver services to participants and then charge for those services based on NDIS pricing terms.
Revenue Sources for NDIS Providers
NDIS providers generate revenue from the following core sources:
1. Service Delivery
The primary source of revenue for any NDIS provider is the delivery of approved services.
These can be:
- Personal care and daily living assistance
- Community access and social assistance
- Allied health services (such as physiotherapy, speech therapy)health
- Support coordination
- Plan management
- Home modification or assistive technology provision
All services have a capped price established in the NDIS Pricing Arrangements and Price Limits (previously the Price Guide). Providers charge within the limits and are paid directly by the NDIS or by plan managers or participants, according to plan management arrangements.
2. Support Coordination
Support coordination is an NDIS Capacity Building support that helps participants connect with services and navigate the NDIS system. The majority of participants in Geelong and across Australia rely on support coordinators to achieve the best out of their plans.
An NDIS provider based in Geelong that offers support coordination earns income by charging per hour (as allowed by the NDIS) for the duration their coordinators spend working with participants.
3. Plan Management Services
Plan managers are responsible for overseeing participant budgets, paying providers, and helping participants monitor spending. Plan managers receive a monthly fee and a one-time setup fee per participant—both separately funded in the participant’s plan.
This gives providers specializing in plan management a reliable stream of income, as well as helping participants maintain financial control.
4. Therapy and Allied Health Services
Providers such as occupational therapists, psychologists, and speech pathologists are paid hourly fees for their services, which are covered under Capacity Building. Many NDIS providers in Geelong employ or subcontract these professionals to deliver therapy services.
Due to the long-term nature of most therapeutic interventions, allied health can be a steady source of income for NDIS providers.
Payment Models: How Providers Are Paid
There are three main ways in which NDIS providers are paid:
1. NDIA-Managed Plans
Here, the provider is paid by the NDIS directly through the online myplace provider portal. Only providers who are registered with the NDIS can service NDIA-managed participants. When a provider delivers a service, the provider logs into the portal, submits an invoice, and is paid by the government.
2. Plan-Managed Plans
Here, a plan manager is a money intermediary. Providers invoice the plan manager, who reimburses the provider out of funds in the participant’s plan. Registered and unregistered providers may have dealings with plan-managed participants, allowing greater flexibility for providers.
3. Self-Managed Plans
Self-managers pay providers directly and get back the cost from the NNDIS. This is most flexible, but providers must have good billing and communication procedures with the participant.
What About Profitability?
Running an NDIS business is not solely about money—profitability comes from managing costs, being compliant, and delivering quality services effectively.
Some of the things that influence the profit margins of an NDIS provider in Geelong are:
- Staff Salaries: Providers need to provide competitive wages to attract quality support staff and therapists.
- Overheads: Costs like insurance, training, administration, and software need to be managed efficiently.
- Travel Costs: Providers often have to travel to the homes of clients, especially in rural areas like Geelong. The NDIS covers some reimbursement, but not beyond a certain limit.
- Compliance: Registered providers must follow strict guidelines and undergo audits, which cost time and money.
Providers who deliver high-demand services, are effective, and meet client satisfaction will likely grow and prosper financially.
The Role of NDIS Providers in Geelong
Geelong is a growing regional hub with high community and a significant number of NDIS participants. Local providers play a crucial role in connecting individuals with support services and facilitating them to live fulfilling, independent lives.
An effective Geelong NDIS provider will have a focus on:
- Building strong local relationships
- Offering adaptable, person-focused services
- Employing professional, caring staff
- Investing in compliance and continuous training
- Being responsive to participant needs and adapting with them
These activities not only bring about trust but also result in long-term sustainability and business growth.
Ethical Earning and Quality Care
NDIS providers must work according to ethical and legal standards while charging for services. Overcharging, delivering excessive services, or misusing participant funds is not acceptable and may result in deregistration or prosecution.
Quality providers, in contrast, focus on transparency, client outcomes, and value for money. Earning an income in the process of positively impacting participants’ lives is the goal—and a rewarding one.
Conclusion
So, how, exactly, do NDIS providers make their money? By offering worthwhile, approved services that are paid for under participant plans—within NDIS guidelines.
Be it support coordination, personal care, therapy, or community access, Geelong-style providers are about more than selling a service. They’re transforming lives, forging inclusive communities, and providing participants with the opportunity to make an informed choice around the support they need.
If you’re looking for a reliable, ethical, and experienced NDIS provider in Geelong, be sure to choose one that aligns with your goals and understands the local community.
Struggling to understand your NDIS plan or locate the right support in Geelong? Contact a reliable local provider today to discuss your options.
