Persona based financing of people with disabilities

From 2017 (with some intermediate steps, in 2016) the care of persons with disabilities gradually evolves into a new funding model. In the past the grants were linked to the facilities and its recognition, in the future a budget will be awarded to people with disabilities themselves. With this budget, the person in question must organize his or her life. For example, support can come from their own family and network, from regular services (such as cleaning services and childcare) or also from an authorized healthcare provider if more specialized care is needed.

A major revolution

Since this budget was linked to the person with a disability and also can be used on various forms of support, in future the starting point will be the needs of the individual and not the offer of the approved facility. For the industry, this means a major upheaval and healthcare providers in particular will have to change their "economic" model completely in order to adapt to these new "market" conditions. The new system indeed encourages social entrepreneurship and capacity will have to adapt to the demand available.

This requires the facilities to adopt a strategic vision for the services they will continue to offer in the future, the price at which they want to do this and the target group they focus on. But they must also, unlike earlier, have a clear picture of the cost of each service they provide to assess the financial implications of their services.

Moore Stephens closely follows the developments in the sector since years. Also over the last three years, we have defined a way of thinking about the cost and supply in the sector. This approach starts with the cost of the facility, the supply and cost of this offer and ultimately confronts this with the budget for the persona based financing of persons with disabilities that should cover this cost. Commissioned by the Flemish Welfare Association (Vlaams Welzijnsverbond), we also have translated this way of thinking into a technical model in this regard making the necessary calculations.

We will of course continue to monitor developments in this sector.

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