The NDIA acts as a market steward for Australias disability marketplace. This means that the agency is tasked with exercising oversight as well as overseeing the development of the NDIS marketplace. Not only will it provide certainty for existing providers but also new entrants who wish to join and serve participants. The agency intends to divide the marketplace into submarkets based on the type of support and services provided to participants as well as the area of operation of these providers. These submarkets will then be monitored by the agency to the extent that it can step in where there is a shortage of supply, absence of competition or general lack of abundant consumer information.
So, what exactly is the NDIA looking to achieve with regards to implementing a market approach? Well, that can best be summarized as follows:
- To boost confidence in the marketplace among all parties
- To create predictability of the marketplaceÍ›s operations
- To ensure accountability for the NDIA
- To create awareness and impart knowledge of the agencys roles and responsibilities within the NDIS community
Earlier, we mentioned that the NDIA acts as a market steward. A market steward is very fundamental where a government initiative such as the NDIA intends to promote consumer choice whilst adopting a market based delivery system. This helps to mitigate effects of issues that may arise such as:
Lack of sufficient information about the initiative and the marketplace among the parties involved
- Unreasonably high transaction costs
- Unregulated quality of services being rendered
- A constrained workforce in the community
As a market steward aiming to promote market diversity, the NDIAs functions are as follows:
The agency will collect data from the day to day operations of the scheme with the view to identifying market gaps and improving efficacy of the market place. This will help it assess whether or not the marketplace is achieving its desired outcomes.
The NDIA intends to improve the overall functioning of the marketplace. This means that it will, where necessary, directly or indirectly carry out actions that influence the operations of the marketplace for the better. Some of these actions include: setting prices, providing information and developing the necessary systems or infrastructure to facilitate transactions.
The agency will in some cases opt to directly source supports to be availed to participants. It may also establish arrangements of Íšpreferred provider groups that are expected to comply with rules of the marketplace.
This marketplace has enormous growth potential which provides business growth opportunities for providers. It also helps people with disability achieve their goals and have a better quality of life.
If you want more information about how you can get started in the NDIS contact us today