Disability services provider Novita faces NDIS pressure as South Australia prepares for skills shortage, growing demand

ONE of South Australia’s major disability services providers is cutting jobs and selling assets due to shrinking revenues under the National Disability Insurance Scheme as research predicts a major shortage of skilled workers when state demand picks up significantly.

Novita chief executive Greg Ward. Supplied pic.

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ONE of South Australia’s major disability services providers is cutting jobs and selling assets due to shrinking revenues under the National Disability Insurance Scheme as new research predicts a major shortage of skilled workers when state demand picks up significantly.

Novita, which was focused on children’s services for most of the past 78 years, has been part of the early NDIS trials since 2013.

However, problems with delayed invoice payments, smaller, inadequate patient plans being developed by the National Disability Insurance Agency (NDIA) and systemic issues with the portal have created a number of problems for Novita.

The not-for-profit service provider currently employs 500 people to cater for 2500 clients in SA and has seen its revenues shrink to $30 million annually.

“We are the canary in the NDIS coalmine with the roll out being a bumpy ride with a significant reduction in our revenues,” said Greg Ward, chief executive of Novita.

“We have had to let go of staff, sell other assets and restructure because we have been making losses for some time,” he told The Advertiser.

“We have also had to keep up services that have lost funding because we have customers depending on those services.

“For me to bring in more staff will kill us,” he said.

Mr Ward’s comments come as new KPMG research shows a looming shortage of skilled workers as demand for disability services in SA grows by 2019 when the NDIS rollout is completed in January 2019.

“To service the forecast increase in demand, it is estimated that the full time equivalent workforce will be required to grow from 5650-6900 to 10,250-12,550 by 2019 — an 82% increase,” the report said.

“New entrants to the market are expected to increase the total market size by 88 per cent. The largest group of new entrants to the market are expected to be in the 5-14 year old age range (with an expected growth of 182%).”

About 17,164 South Australians currently receive specialist disability support in SA valued at $760 million.

This number is expected to grow to 32,000 people.

A state forum on Monday will hear from senior government and industry leaders on how to tap into opportunities related to the estimated $1.5 billion spend on disability services by 2019.

Organised by the Shaping the Future of South Australia Foundation Partners, Bank SA, CEDA, Flinders University, state government and KPMG, the discussion at the convention centre will look at ideas to develop the systems, service offerings and business models.

KPMG partner and incoming SA chairman Justin Jamieson said the program is about ensuring the state is ready to capitalise on the opportunity provided by the NDIS.

“The NDIS has been identified as a critical driver of employment in our state and we now have

an opportunity to bring together government, industry, the sector and people with disability to

make sure we maximise the employment opportunities,” Mr Jamieson said.

Nationally, the scheme will deliver individualised support to 475,000 Australians at a cost of $22 billion each year.

A final report by KPMG outlining key recommendations for SA is due before the end of the year.

WHAT IS NDIS?

• NDIS supports people with a permanent and significant disability, which affects their ability to take part in everyday activities.

• The National Disability Insurance Agency (NDIA) implements the NDIS.

• There is an eligibility checklist for people with disability, or their family.

• Once eligible they can then apply to receive support through the NDIS.

• Once accepted, a planning conversation is held with an NDIS representative and a plan prepared and funded, after which the person or family has to select a service provider/s.

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