With the release of the McKinsey ‘Independent Pricing Review’ recommendations recently, there is now need, for even more clarity over pricing and claims. McKinsey & Company stated in their Report that the "recommendations will have a positive impact on provider economics, improving overall industry margins by 2% to 4%, with even higher margin improvements for providers serving participants with complex needs or in rural, remote and very remote areas". In summary:
- Price changes are coming and are estimated to cost the scheme between $250m and $420m per annum over the next 12-24 months.
- Adding a third tier to the complexity loading of 10%, to account for higher level of skills/experience of workers and additional training required
- Changing the therapy prices to better reflect different therapy types, and introducing a second tier of pricing for therapy assistants
- A model of Transitional Support for Overheads (TSO) in the form of a 2-3% increase in the price cap of 1:1 attendant care for the next 12 months