Dreaded ‘failures to attend’, ‘did not shows’, and late cancellations squeeze provider profit margins, make it harder for NDIS and health providers to pay bills on time, waste worker time, which could otherwise be spent helping clients and potential clients (including waitlisted clients) and – worst of all – can undermine the trust between you and your client: trust that is so essential for you to provide first-rate, quality care.
In its Pricing Arrangements and Price Limits 2022/23 (Price Limits), the NDIA has has changed the rules with respect to short notice cancellations. In the Price Limits it states:
“Where a provider has a Short Notice Cancellation (or no show), they are able to claim 100% of the agreed fee associated with the activity from the participant’s plan, subject to the NDIS Pricing Arrangements and Price Limits and the terms of the service agreement with the participant.
A cancellation is a short notice cancellation if the participant:
- Does not show up for a scheduled support within a reasonable time, or is not present at the agreed place and within a reasonable time when the provider is travelling to deliver the support; or
- Has given less than seven (7) clear days’ notice for a support.
….Providers can only claim from a participant’s plan for a Short Notice Cancellation of the delivery of a support item to the participant if all of the following conditions are met:
- The NDIS Pricing Arrangements and Price Limits indicates that providers can claim for Short Notice Cancellations in respect of that support item; and
- The proposed charges for the activities comply with the NDIS Pricing Arrangements and Price Limits; and
- The provider has the agreement of the participant in advance (that is, the service agreement between the participant and provider should specify that Short Notice Cancellations can be claimed); and
- The provider was not able to find alternative billable work for the relevant worker and are required to pay the worker for the time that would have been spent providing the support.”
To manage and reduce FTAs, you need a properly drafted agreement that clearly explains your clients’ legal responsibilities when they book appointments with you.
Our NDIS and Health Provider Booking and Cancellation Policy explains to clients why it is so important that they attend appointments on time, and why late cancellations are a problem. It also sets out what happens if a client doesn’t show up, cancels at short notice, turns up late, or behaves in an unacceptable or dangerous way.
The Policy also sets out what happens if a client needs to cancel an appointment at short notice (aligned with the NDIA 7-day short notice cancellation principle as set out in the NDIS Pricing Arrangements and Price Limits 2022-23). The template is provided in Word and PDF formats, so you may amend it to suit your business arrangements.