Are you familiar with the NDIS cancellation policy? At the start of the 2022-23 financial year, the NDIA amended the definition of short notice cancellation in the Pricing Arrangements and Price Limits.
A cancellation is considered 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.
Why is this so important?
Short notice cancellations allow providers to claim 100% of the agreed fee associated with the service from the participant’s plan. Simply put, you will still be billed for the service.
Understanding the NDIS Cancellation Policy
“Clear days” refers to full days that exclude both the day on which the participant gives notice and the day the service is scheduled to be provided. The NDIA has simplified the definition of short notice cancellations from a previous two-tier system that required two days’ notice for shorter supports and five days for other supports.
At Life Your Way, we maintain our existing cancellation policy where you may continue to provide 24 hours’ notice if you wish to cancel a service. However, please note that short notice cancellations, as defined by the NDIA, will result in billing as outlined in the NDIS Pricing Arrangements.
Conditions for Short Notice Cancellation Claims
Eligible Support Items
The NDIS Pricing Arrangements and Price Limits indicate that providers can claim for Short Notice Cancellations for the specific support item.
Pre-Agreement
The provider has the participant's agreement in advance (i.e., the service agreement between the participant and provider specifies that Short Notice Cancellations can be claimed).
Pricing Compliance
The proposed charges for the activities comply with the NDIS Pricing Arrangements and Price Limits.
No Alternative Work
The provider was unable to find alternative billable work for the relevant worker and is required to pay the worker for the time that would have been spent providing the support.
Avoiding Short Notice Cancellations and Disruptions
As a organisation that intends to operate as a registered NDIS provider, Life Your Way is committed to minimising disruptions to participants’ care to ensure they are adequately supported and their NDIS funding is maximized.
However, we understand that life happens—participants may need to cancel due to sudden illness, inclement weather, or other unforeseen circumstances. If a service is cancelled on short notice, we are still obligated to pay our hardworking staff, which is why we may need to claim from plan funds when eligible under the NDIS cancellation policy.
To avoid confusion, we clearly explain this policy to participants during onboarding, emphasising the importance of providing advance notice whenever possible. Our cancellation policy is also detailed in our service agreements.
Duty of Care
While there is no strict limit on the number of short notice cancellations or no-shows for which a provider can claim, Life Your Way also has a duty of care to our participants. If a client experiences an unusual number of cancellations, we will take proactive steps to understand why. This may involve adjusting the service schedule, providing reminders, or investigating more serious underlying issues that may need further support.
Billing and Communication
In the event of a short notice cancellation, the fee will be billed directly to the participant’s NDIS plan. If the participant is self-managing their plan, they will be responsible for arranging payment. Participants are encouraged to communicate any cancellations as early as possible through the designated contact channels to ensure proper documentation and processing.
Support for Participants
Frequent cancellations may indicate a need for additional support. Our team is available to discuss any challenges participants may be facing, and we are committed to finding solutions that work best for them. Where possible, we will work with participants to reschedule services that have been canceled on short notice to minimize disruption to their care.
