What is a Conflict of Interest?
A conflict of interest can occur when an individual or organisation has competing interests or loyalties that could influence their decisions or actions that mean that do not necessarily act in the best interest of the participant. This can occur at all levels of the NDIS and can affect participants in different ways.
Examples of a Conflict of Interest.
Most conflicts of interest arise from who is providing services to a participant. The NDIA generally considers it a conflict of interest when any of the following people provide services to a participant on the NDIS:
Plan Managers
Support Coordinators
Family Members
As a plan manager has unique and details insights into a participant’s NDIS budget, it is considered a conflict of interest if they are also providing other services. This is because they have detailed access to funding levels and can exert influence to guide a participant to utilise their own services, rather than recommending the best possible options available.
Similarly, a support coordinator who also offers support work and other services may also favour their own services, regardless of whether they are the most suitable for the participant’s needs.
While family members can offer unique insights and dedicated care to a participant, they may also prioritise their interests over the participant’s needs. This can lead to decisions that are not objective. Family members are also frequently considered to provide informal supports, which are not appropriate for NDIS funding.
Why is Conflict of Interest a Concern?
The NDIA considers the issue of conflict of interest to be a concern that needs to be addressed and reduced across the system. When decisions are influenced by personal or organisational gain, the quality of care can reduce. Participants might not receive the most effective or appropriate services, which can hinder their progress and wellbeing.
Conflict of interest can also reduce trust between a participant and the NDIS. If participants are aware that some of their providers are acting on the business’s interests, and not their own, then they may be sceptical of advice and supports delivered, which increases a reluctance to engage with the NDIS.
Service providers acting in their own interests may also recommend unnecessary services to boost their own profits. This may deplete or exhaust a participant’s funding early or reduce the capability to engage with meaningful and needed supports.
Conflict of interest may also result in legal repercussions. If a service provider is found to be exploiting their position for personal gain, it can result in legal action.
How to Address Conflict of Interest Concerns?
There are clear policies and guidelines in place to identify and manage any potential conflict of interest. These include mandatory disclosure of any potential conflicts and strict penalties for non-compliance.
A separation of roles also helps to ensure that conflict of interest situations do not arise. By keeping plan management, support coordination, and service providers separate, it limits the capacity for these situations to develop as there is less chance of financial gain to be made from offering unneeded services.
Most importantly, the needs of the participant should always be placed above and beyond any need or requirement of a service provider, support coordinator, or plan manager.