Allied Therapy Services placed in liquidation, jobs lost

Another Geelong disability organisation has gone bust, six months after they increased their price above the NDIS price rate.

Naomi Doody, director of Allied Therapy Services. Picture: LinkedIn

Another Geelong disability organisation has gone bust, six months after they increased the cost of their service above the NDIS price rate, leaving clients in limbo and staff out of jobs.

Allied Therapy Services, which was first registered in November 2018, has been placed in liquidation after Scott Andersen of Worrells was appointed liquidator on Wednesday.

The company lists Naomi Doody as its sole director and according to Australian Securities and Investments Commission documents, the company owes $160,000 to the Australian Taxation Office.

According to their website, the company provide in-home and community-based occupational therapy, physiotherapy and speech pathology support across regional Victoria.

It’s understood the company employed over 31 staff and 14 contractors across offices in Geelong.

A former employee told the Geelong Advertiser that as of Tuesday all clients were now without their services and all employees were unemployed.

“We were aware there were financial issues, the director tried to put in a price increase, which charged above the NDIS rate which ultimately failed,” the former employee said.

“The community and even NDIS participants were not on board with paying more than the NDIS price rate”.

The former employee said she was disappointed the company was now placed in liquidation.

She said the workers were “shocked and disappointed” and said the business closure was a “sad reality for our clients”.

“It’s right before Christmas and it’s obviously devastating for lots of people.”

It’s understood the company ceased to trade as a result of cash flow constraints.

In an email sent to customers seen by this masthead, the company said they would be increasing their fees above the NDIS rate to $209 an hour, which resulted in clients having to pay out of pocket fees.

“We have worked hard to keep this increase as low as possible. We have kept our fee the same for the past 5 years however we’re not able to keep absorbing the increasing costs associated with delivering a high-quality therapy service,” the email read.

“We are also not prepared to compromise on quality and start to offer a lesser service.

“We recognise that this will be a challenge for some, particularly in a climate where therapy services and supports continue to be underfunded.”

Ms Doody was contacted for comment.

Originally published as Allied Therapy Services placed in liquidation, jobs lost