Providers and rates
Merrivale charges a flat hourly rate and pays a rate that changes with the day. On some days that is a good business, and on some days it is not.
Northgate is the third largest client by volume and the smallest by contribution.
The agreement sets one rate for every hour of the week. Sixty-one per cent of Northgate’s
shifts fall on a weekend or a public holiday, which is exactly where the award cost is
highest. Merrivale has been busiest where it earns least, for two years, without it
appearing on a report.
Northgate Disability Services
DSW, casual · flat charge $68.00/h · agreement to 30 Jun 2027| Day type | Shifts/yr | Charge | Award cost | Margin | Contribution |
|---|---|---|---|---|---|
| Monday to Friday | 1,630 | $68.00 | $52.10 | 23.4% | $155,400 |
| Saturday | 1,240 | $68.00 | $63.20 | 7.1% | $35,700 |
| Sunday | 1,120 | $68.00 | $71.40 | −5.0% | −$22,800 |
| Public holiday | 190 | $68.00 | $89.30 | −31.3% | −$24,300 |
| All shifts | 4,180 | $68.00 | $62.90 | 7.5% | $144,000 |
Firm-wide margin is 22.6%. Northgate runs at 7.5%, and the two
columns that drag it there are the two Merrivale finds hardest to fill — because the
workers can see what the day is worth even when the agreement cannot.
Every provider, same test
| Provider | Rate basis | Shifts/yr | Weekend | Margin |
|---|---|---|---|---|
| Brookvale Aged Care 8 homes |
Day-type schedule | 14,600 | 31% | 24.8% |
| St Cuthbert’s Private Theatre and wards |
Day-type schedule | 6,900 | 28% | 27.1% |
| Ardenmere Residential 3 homes |
Day-type schedule | 8,400 | 33% | 18.2% |
| Northgate Disability Supported accommodation |
Flat, all hours | 4,180 | 61% | 7.5% |
| Yarraville Community Community health |
Day-type schedule | 3,100 | 9% | 26.4% |
| Kerrisdale Lodge Single site |
Flat, all hours | 2,020 | 44% | 12.9% |
Both flat-rate agreements sit at the bottom. That is not a
coincidence and it is not a negotiation failure — it is what a flat rate does to a
business whose costs are set by the calendar.
The margin is calculated, not entered.
Award cost per shift comes out of the same engine that pays the worker, so the margin
column moves when a rate rises on 1 July whether or not anyone reviews the agreement.
A flat-rate client goes red on its own.
If Northgate moved to day-type rates
Contribution now$144,000
At firm-average margin$434,000
Difference$290,000
Agreement expires30 Jun 2027
Whether Northgate would accept it is a separate question.
Knowing the number before the conversation is the part software can do.