Revenue
Businesses that operate as NDIS service providers are in an unusual position because the fees that can be charged are capped by the NDIS Pricing Arrangements and Price Limits. The result is a ceiling on the amount of income that can be generated by the business.
This means that business owners need to look for other ways to create financial viability.
One way you can achieve financial viability is by increasing the revenue opportunities by creating diversification within your business.
This can be achieved via:
- Private supports, such as self funded clients, programs, training, sale of products
- Other Government services, such as medicare, FACs, Aged Care
The added benefit of creating diversification is that the business is less dependent upon the NDIS, providing a safeguard in the event the scheme is dramatically changed.
Other tips for maximising revenue:
- Cross check employee timesheets with billable hours to ensure that all hours of support delivered to participants are billed
- Train your employees on what supports are considered billable, eg phone calls to ensure all interactions are accounted for
- Monitor the available funds/supports agreed upon in your Service Agreement to that provided to the participant to ensure that you do not:
- over deliver supports that are not able to be claimed, or
- under deliver on supports, resulting in the participant not receiving the agreed service, and missed revenue.
To calculate your business’ total potential revenue amount multiply the total number of available billable hours by the relevant hourly rate for the provision of your supports.