S8E08 - Fuel, Funding and Future Risk: Navigating Cost Pressure in OT Practice

Why rising fuel costs are changing service delivery...

Fuel costs directly impact how Occupational Therapy is delivered. Home, school and community visits all rely on travel, and when those costs increase quickly, the effect is immediate.

This is particularly significant in regional areas where long distances are unavoidable, but metropolitan services are also feeling the strain. What was once a manageable expense is now influencing margins, service reach and day-to-day decision making.

For many businesses, this is the point where travel stops being financially neutral and starts requiring active management.

Travel, staff costs and service agreements...

As travel costs rise, three areas need to be reviewed together rather than in isolation: staff reimbursement, participant travel charges and service agreements.

Reimbursement arrangements that once felt fair may no longer reflect the real cost of travel, particularly for therapists covering large areas. At the same time, businesses may need to consider adjusting their per-kilometre charges or limiting travel zones to remain viable.

These changes rely on clear, well-structured service agreements. Clauses around fee adjustments and notice periods allow providers to respond to changing costs while maintaining transparency with participants.

While concerns about pushback are common, many families understand that travel has a real cost when it is explained clearly. Not all will agree, but clear communication makes these conversations more manageable.

Rethinking service models and workforce realities...

Rising fuel costs are also exposing whether existing service models are still sustainable.

Wide catchment areas and heavily mobile services may no longer be viable in their current form. Some practices are beginning to shift towards tighter service areas, increased use of telehealth or more clinic-based delivery where appropriate.

At the same time, fuel costs are influencing recruitment. Therapists are increasingly considering commute distances and travel expectations when choosing roles. This means businesses may need to rethink not just how services are delivered, but how roles are structured to remain attractive.

NDIS pricing uncertainty and sector risk...

These challenges are compounded by uncertainty around upcoming NDIS pricing decisions.

Potential changes, including differentiated pricing between registered and unregistered providers, raise important questions about how the market will respond. If higher costs are passed on to participants, many may still choose lower-cost options to maximise their plan funding, regardless of registration status.

In Occupational Therapy, where trust and continuity play a significant role, pricing differences alone may not drive participant behaviour in the way policymakers expect.

Even small changes to pricing, travel recovery or funding structures could have a significant impact. For businesses already operating with tight margins, these shifts may be enough to challenge long-term viability.

Reviewing costs and leading proactively...

In this environment, reviewing costs is not optional. It is one of the most practical steps business owners can take.

Expenses such as software, mobile plans, insurance, bookkeeping and duplicated systems often go unchecked. Identifying and reducing these can create immediate breathing room.

At the same time, efficiency should be approached thoughtfully. The goal is not to strip back services, but to ensure resources are being used intentionally. Reviewing workflows, admin processes and time allocation can improve sustainability without compromising care.

Ultimately, this is a period that calls for proactive leadership. Waiting for certainty is unlikely to be effective. Businesses that review early, communicate clearly and plan for multiple scenarios will be better positioned to navigate what comes next.

Key takeaways for OTs...

• Review travel reimbursement, charging and service agreements together
• Reassess the sustainability of your current service model and travel zones
• Consider how fuel costs are affecting recruitment and staff retention
• Prepare for potential NDIS pricing changes and different scenarios
• Audit recurring costs across your business to identify savings
• Focus on proactive, informed decision-making rather than waiting for clarity