S7E07 - Crunch Time Again: Inside the New Pricing Analysis and Disability Sector Report

Navigating sector uncertainty and what OTs need to know right now The disability sector continues to shift rapidly, with new reports, pricing discussions and workforce pressures influencing how providers operate. For many OTs, the mix of policy noise, business demands and day-to-day practice pressures can feel overwhelming. This week’s developments highlight the importance of staying informed, planning deliberately and understanding the broader context shaping service delivery.

Life and business behind the scenes

Many OTs are juggling work demands alongside family responsibilities, volunteering commitments and the realities of running a business. The pressures of the past year have left many clinicians stretched thin. For some, even basic self-care and community involvement have been pushed aside in favour of immediate business demands. This is a reality across the sector, not a personal failing.

It is a reminder that capacity fluctuates over time and that professional expectations must be balanced against what providers can realistically sustain. As workloads intensify and uncertainty continues, reassessing commitments has become essential. Many clinicians are now reconsidering their volunteer roles, workload distribution and business structures to prevent burnout and protect long-term career sustainability.

New analysis on physiotherapy pricing and what it signals for all allied health

The Australian Physiotherapy Association recently released an independent analysis of the 2024–25 Annual Pricing Review. Although focused on physiotherapy, the findings mirror concerns shared across allied health.

Three major issues were identified... Session durations were modelled inaccurately: The APR assumed longer average session times than what occurs in practice. This inflated the perceived hourly rate and contributed to lower price caps. The review found typical private consults were closer to 30 minutes, not 45.

Data sources were limited and unrepresentative: The APR relied heavily on publicly listed prices, selective Medicare data and a single private health insurer. Most physiotherapy clinics do not publicly publish fees, and the data used did not reflect the complexity, load or structure of disability work.

NDIS-specific complexity was not sufficiently captured: Productivity expectations, non-billable time, compliance requirements and travel obligations differ significantly between NDIS and private practice. The model did not account for this, underestimating the cost of delivering disability-specific services.

Independent benchmarking estimated a realistic 75th percentile hourly rate closer to $215–$260 per hour, considerably higher than the APR’s estimate of $150. While this report focuses on physio, its themes are highly relevant to OTs. Many of the same pressures exist across disciplines, including heavy administrative loads, higher complexity and significant non-billable work. Importantly, this is not a moment for allied health professions to compete or criticise one another’s peak bodies. Sector sustainability will only be strengthened through unified advocacy, shared messaging and coordinated responses to policy change.

What the 2025 State of the Disability Sector Report tells us

National Disability Services has released its latest State of the Disability Sector report, offering a comprehensive snapshot of provider sentiment, business viability and workforce conditions. Several findings stand out...

Financial pressure remains severe: A large proportion of providers are operating at a loss, with some reporting deficits of $500,000 or more. Around half continue to operate in the red, with another quarter only breaking even.

Market exits have not increased as sharply as anticipated: Although some providers have withdrawn, the overall exit rate has not risen dramatically in the past year. The highest levels of exit were recorded during the previous period. However, these data are likely drawn predominantly from regi