Update on Pricing, Contracting and Pay Equity Implementation 

Update on Pricing, Contracting and Pay Equity Implementation

The Ministry and NZDSN have had a further meeting to progress a joint understanding of a new Residential Pricing Model (RPM) and how pay equity implementation could be accommodated in such a model. NZDSN have offered some principles and acceptance criteria as a means of arriving at an agreed approach.

Generally there is broad agreement on the principles. In regard to the acceptance criteria, further discussion is required to gain consensus on what makes a good pricing model.  The NZDSN focus group will be investing time on ensuring there is understanding around the assumptions that underpin the model and how these play out for providers in terms of risk, sustainability, quality and flexibility.

Two work streams have been established to analyse aspects of the pricing tool in more detail, which will inform thinking around the ability for pay equity and funding for high and complex needs to be incorporated into the model. NZDSN will update the Ministry in approximately 3 weeks on the progress being made with this work.

Once this work is done, and with the agreement of the Ministry,  it is our intention to arrive at a point where we are able to offer a detailed analysis and initial views on one or more approaches. The goal is for providers to arrive at a shared understanding of the model, the implications for their organisation and to build some consensus on a way forward.

It is important to emphasise that this work is extremely complex and we want to be able to engage with the wider NZDSN membership in a way that is well informed and where we have a level of confidence about any views we share with you.

Dr Garth Bennie
Chief Executive

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