The peak body for occupational therapists (OTs) says NDIS price freezes have left hundreds of occupational therapy businesses on the brink of financial ruin, risking the care of thousands of NDIS clients.
New data from Occupational Therapy Australia (OTA) shows closures and service reductions related to recent NDIS price increases could impact more than an estimated 17,300 people, including more than 4500 in regional and remote areas, if the seven-year price freeze on rates for occupational therapists is not lifted.
In July, the NDIS cut travel reimbursement rates for home visits by half, while leaving OT services at $193.99 per hour, unchanged since 2019.
What does the data say?
OTA’s claims are based on a survey of more than 600 occupational therapy businesses, that showed more than half failed to make a profit in the past financial year.
According to the survey 14 per cent of businesses are already planning to close their doors and a further 50 per cent of providers are actively considering exiting the sector within the next three years.
As well, 92 per cent of service providers said they have had to cut back on travel and outreach to clients, which impacts rural and remote communities.
It’s the latest bad news for the sector, after the Health Services Union last week released data revealing a burnout crisis amongst disability workers.
What’s next for OTs?
OTA chief occupational therapist Michelle Oliver called on the Federal Government to immediately increase pricing and travel allowances to keep OTs across the nation in business.
“We are beyond calling this a crisis, we are talking about market failure. We are now seeing providers being pushed to the brink and people unable to access the care they need most,” Oliver said.
OTA is calling for an immediate price uplift of at least 7 per cent, restoration of travel rates, and a thorough review to create an allied health-specific pricing model reflecting real-world business costs.
“This survey is the canary in the coal mine. If swift action is not taken, we will see hundreds of therapists exit the sector. This will have grave consequences – especially for people in regional, rural and remote areas,” Oliver said.