The latest Pricing Arrangements and Price Limits (PAPL) update has dropped some changes to Short Notice Cancellations (SNCs) that may have flown under the radar. But don't worry, we're here to unpack the essentials.
Once upon a time (read: before July 2024), the SNC notice period was a whopping 7 calendar days. If a participant cancelled too close to their appointment, providers could still bill for the service. But here’s the twist: that window has now been cut to just 2 clear business days—for some services!
If you're providing services that are not covered by the Disability Support Worker (DSW) Cost Model (such as Support Coordination, independent support work, or therapy), participants can cancel up to two business days before without paying a fee. Meanwhile, services under the DSW Cost Model still hold strong at 7 calendar days. So, if you’ve got a mix of services, make sure you know which rule applies—don’t let it catch you off guard like a surprise birthday party!
It’s easy to get lost in the details, but here’s the scoop: 7-day notice periods refer to calendar days, while the new 2-day rule for non-DSW services is all about business days (cue the 9-5 workday tunes). So, what does this mean? If your client has an appointment on Thursday, they can cancel anytime before Monday’s close of business without getting billed. Got it? Good! Now go ahead and mark those calendars (just make sure it's the right one).
Providers, take note—billing for Short Notice Cancellations is under more scrutiny than ever. NDIA is watching and may check in if they notice an unusual number of cancellations. Remember: you can't just start charging for cancellations willy-nilly. Any cancellation fees must be clearly agreed upon by the participant through a Service Agreement. No consent, no charge!
While this SNC update might seem a bit convoluted (we see you, NDIA!), it's all about striking a balance between flexibility and fairness. Take the time to review your Service Agreements, audit your billing practices, and keep on top of these rule changes. And if all else fails, consider a cheeky cancellation fee waiver when life throws your participants a curveball—they’ll appreciate the goodwill!
Stay sharp, stay compliant, and keep those calendars clear!
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