Hivetec-DES-Report-V1.4

PROVIDER PERSPECTIVE SWOT
Strengths
Weakness
Low cost tender round for incumbent at 3* or above
Retain distinction between DMS and ESS services yet
via single contract
Consumer choice, empowering participant to move
between ESA boundaries
Provider growth encourage when delivering above
market performance
Higher outcome payment for certain clients
Low prescribed servicing requirement, room for
innovation
Poor provider removed form market after 4 qtrs of
under performance
No market share allocation
Funding reduced from 60/40 to 50/50 PbR
New cost of sale requirement
Reduced barriers to entry for new entrants
Consumer switching, with cash transferring with
individual
More panel # in each ESA (Increased competition for
participants)
Provider outcome payment stretched over 52 weeks
Greater visibility on past performance
3-month service fees upfront
Lower work capacity requirement for full outcomes
Opportunities
Threats
The use of outside service providers to perform
various non-core activities
Innovation in service delivery
Strong entry level jobs growth from NDIS & care
sector
Existing infrastructure can be leveraged for DES
Softening employer perception around mental health
Low interest rate environment
New entrants competing for participants
Less predictable cashflow
Risk adjusted funding requires different servicing
requirements /costing per stream
Longer PbR risk 4: 52 weeks
Longer ROI window for providers
Loss of supporting contracts underpinning
infrastructure costs
Less possible external funding availability
Education outcome increased from CII to CIII,
affecting performance
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