By Sean Betland, General Manager, Interact Injury Management
The July 2025 Workplace Rehabilitation Provider Evaluation, commissioned by the State Insurance Regulatory Authority (SIRA) and conducted by Urbis, offers a comprehensive review of how rehabilitation services are functioning within the NSW workers’ compensation scheme.
With data, insights, and recommendations, the report provides a timely lens into the evolving landscape of occupational rehabilitation—particularly as psychological injury claims surge and legislative reforms loom.
Key takeaways for employers
- 75% of injured workers who engaged with Workplace Rehabilitation Providers achieved a durable return to work.
- Small businesses are more likely to engage rehabilitation services, but regional access remains a challenge.
- Psychological injuries are rising, yet outcomes are less durable compared to physical injuries.
- Innovation is needed in service delivery, classification codes, and provider accreditation.
- Sustainability risks are emerging due to workforce shortages and inconsistent provider quality.
- Upcoming reforms present an opportunity for sector-wide improvement which may include a review of Claim Service Provider panels and even the accreditation of rehabilitation providers with SIRA.
Reach: who is accessing rehabilitation services?
The evaluation reveals that small employers are more likely to engage Workplace Rehabilitation Providers, with usage patterns influenced by injury type, location, and industry.
Notably, in-person services are preferred and deliver better outcomes, yet regional and remote areas face access challenges.
This signals a need for targeted strategies to expand capability and reach beyond metropolitan centres.
Call out for employers: If you’re a regional employer, consider partnering with providers who offer in-person services or hybrid models to improve outcomes for your workforce.
Effectiveness: are services delivering results?
During the 2022–2023 period, 30% of injured workers accessed rehabilitation services.
Of these, 75% achieved a sustained return to work, with physical injury cohorts showing stronger outcomes than psychological ones.
While regional vs metropolitan comparisons were limited, the report hypothesises that limited access in remote areas may negatively impact recovery durability.
Call out for employers: Early engagement with rehabilitation providers—whether for physical or psychological injuries—can significantly improve employee recovery and productivity.
Implementation: navigating complexity
Stakeholders broadly recognise the value of rehabilitation services, acknowledging the complexity of managing relationships across employers, workers, doctors, insurers, and brokers.
The report recommends expanding classification codes that providers deliver under to enable more tailored service delivery and support innovation in addressing emerging challenges.
Call out for employers: Advocate for flexible service models that reflect the unique needs of your workforce and injury types.
Appropriateness: balancing standards and innovation
While minimum standards are clear, they can be overly prescriptive, limiting bespoke service provision.
The sector faces recruitment and retention challenges, especially in regional areas, and concerns are rising over the quality and consistency of some providers.
The introduction of external audits is proposed to improve oversight and accountability.
Call out for employers: Choose providers with a proven track record of performance and transparent quality assurance processes.
Efficiency: rising costs, unclear gains
Spending on rehabilitation services continues to grow, yet overall scheme performance has plateaued.
The report questions whether this is due to increasing client complexity, particularly the rise in psychological injuries, and calls for deeper analysis.
Call out for employers: Monitor provider performance and ensure services are aligned with measurable outcomes—not just activity.
Sustainability: preparing for the future
To manage costs and improve outcomes, the report suggests removing underperforming providers and implementing a gazetted fee schedule.
Strengthening ties between universities and providers, and broadening the pool of approved allied health professionals, are seen as key strategies to build workforce capacity and meet growing demand.
Call out for employers: Support initiatives that grow the rehabilitation workforce and diversify service delivery options.
Looking ahead: reform and opportunity
With SIRA accreditation and the icare provider panel both up for review in 2026, and legislative changes under debate, the sector is poised for transformation.
The evaluation underscores that while many providers deliver high-quality services, systemic improvements in accreditation, oversight, and service flexibility are essential.
Call out for employers: Stay informed and engaged in upcoming reforms to ensure your organisation benefits from a more effective and sustainable rehabilitation ecosystem.
Conclusion: a call to action for employers
The July 2025 SIRA evaluation makes one thing clear: workplace rehabilitation is at a crossroads.
While many providers are delivering high-quality support, the system faces mounting pressure from rising psychological injury claims, regional access gaps, and sustainability risks.
For employers, this is a pivotal moment to engage more deeply with the rehabilitation ecosystem.
By choosing the right providers, advocating for flexible and innovative service models, and staying informed about upcoming reforms, employers can play a critical role in shaping a more effective and resilient system—one that truly supports injured workers in returning to meaningful, sustainable employment.
Change is inevitable. But with the right partnerships and proactive strategies, employers can help lead it.
Sean Betland
General Manager
