Navigating Unpaid Invoices

For Occupational Therapists and providers working within the NDIS, unpaid invoices are more than just an administrative nuisance – they can threaten the financial viability of a practice.?

The complexities of NDIS funding, participant disengagement and the ethical considerations around debt collection create a unique challenge.?

So, how do providers balance business sustainability with participant-centred care?

The reality of unpaid invoices

Unpaid invoices often arise due to misunderstandings about funding responsibility, participant disengagement or administrative errors.?

Unlike private practice settings where payment terms are clearer, the NDIS system involves multiple payers – NDIA-managed, plan-managed and self-managed participants – each with different invoicing processes.?

This variability increases the risk of delayed or non-payment.

Common causes of unpaid invoices include:

• Participant disengagement: A participant stops responding to services but remains liable for booked appointments.
• Plan funding complications: Exhausted or misallocated funds can result in rejected invoices.
• Administrative oversights: Incorrect details on service agreements or invoices can lead to delays.
• Ethical considerations: Pursuing payment from vulnerable participants presents a moral dilemma for providers.

Balancing ethics and business viability

Providers must navigate the fine line between maintaining financial sustainability and upholding the values of participant-centred practice.?

Ignoring unpaid invoices can impact service continuity while aggressive debt collection can damage trust and reputation.

To maintain this balance, providers should:

1. Strengthen service agreements: Clearly outline cancellation policies, payment responsibilities and dispute resolution processes.
2. Implement proactive communication: Regularly check in with participants and support coordinators about funding status and any potential issues before they escalate.
3. Set clear invoicing and payment policies: Ensure invoices are issued promptly and include clear payment terms. Automated reminders can help reduce late payments.
4. Offer payment plans where feasible: For self-managed participants facing financial difficulties, structured payment plans can provide a fair solution.
5. Have a structured escalation process: When invoices remain unpaid, follow a structured process that may include follow-up calls, formal reminders and, as a last resort, ethical debt recovery strategies.

By implementing these strategies, providers can reduce financial risk while maintaining ethical and participant-focused service delivery.

Want to know more about invoicing?

Verve OT Learning offer a fantastic one hour workshop on this topic:

Invoicing Simplified: Prompt Payments and Collections is being run LIVE by Nikki Cousins - Action OT and Chris Cousins on 11th March 2025 at 10.30AM AEDT

Who is this workshop for:

Business owners, practice managers and professionals responsible for invoicing and accounts who are ready to simplify their processes and improve cash flow.

What will you learn?

• Streamline Billing Processes: Master techniques to tighten your billing systems and ensure timely payments for your services.
• Adapt to PACE System Changes: Understand how the new payment system impacts invoicing and learn actionable steps to stay compliant.
• Boost Efficiency: Discover practical strategies to reduce time spent chasing invoices while improving overall business processes.
• Manage Unpaid Accounts: Get step-by-step guidance on following up overdue invoices and effectively engaging a debt collection service when necessary.
• The session also includes an in-depth case study highlighting how a debt collection service achieved a successful resolution for an aged account.

Sign up today for LIVE ONLINE workshop: https://www.verveotlearning.com.au/invoicing-simplified-prompt-payments-and-collections

If you can't join Nikki live, access self-paced learning whenever suits you best: https://www.verveotlearning.com.au/invoicing-simplified-prompt-payments-and-collections