Geelong disability providers like genU, Gateways face challenges

A peak disability body says financial viability is a “major concern” for providers, following a string of challenges facing local providers.

National Disability Services chief executive Laurie Leigh. Picture: Adam Yip / Manly Daily

Financial viability is a “major concern” for disability services, as Geelong providers face a range of challenges.

Encompass Community Services entered administration in January, while Gateways Support Services recorded a large deficit last financial year.

Regular polling by peak body National Disability Services (NDS) shows economic viability is a major concern for disability service providers.

The NDS State of the Disability Sector Survey published in November 2022 revealed 36 per cent of providers anticipated making a loss/deficit in 2022-23, up from 23 per cent in 2021-22.

NDS chief executive Laurie Leigh said it was particularly concerning that many more providers were expecting to make a loss this year.

“Providers are very accurate in predicting their financial outcomes for the coming year,” she said.

“Predictions of losses made in the previous survey were consistent with the rate of losses reported by providers in 2021-22.”

The State of the Disability Sector report also reflected a sector less confident than ever in its capacity to operate within current NDIS pricing and funding approaches, according to NDS.

“Wage pressures and rising costs are constant and require improvement in the pricing,” Ms Leigh said.

NDS said it had recommended the federal government establish a fair and transparent pricing mechanism, similar to the independent Health and Aged Care Pricing Authority, that supports responsive pricing with the aim of achieving sustainable and efficient services.

The National Disability Insurance Agency is headquartered in Geelong.

Bill Shorten. Picture: NCA NewsWire / Gary Ramage

A spokeswoman for NDIS Minister Bill Shorten said the Albanese Government granted NDIS providers a generous increase last year.

“We are confident that providers are able to run quality services to people with disability,” the spokeswoman said.

“The NDIS Review is also looking into the costings and pricing of providers and workers to ensure long-term scheme sustainability and quality of services.”

GEELONG DISABILITY SERVICE WOES

ENCOMPASS COMMUNITY SERVICES

Encompass entered administration in January, and it was revealed it likely owed more than $4m to creditors.

According to Worrells, in January Encompass served about 900 participants, was training about 110 students and had 298 employees.

Disability support, employment help, in-home care and some other services run by Encompass were rescued by genU and gforce.

Encompass had been involved in an underpayment saga before the administration was announced.

GATEWAYS SUPPORT SERVICES

Geelong-based disability support service Gateways recorded a deficit of more than $3.1m in 2021-22, following a loss of about $1.64m the previous financial year.

In 2022, interim chief executive Graeme Kelly told the Addy last financial year’s deficit was a result of several factors such as Covid impacting community services significantly during periods of lockdown, NDIS funding and policy changes, and JobKeeper funding coming to an end.

He said the company’s financial position had improved already this financial year.

The organisation appointed a new chief executive, Rohan Braddy, who is set to commence the role in April.

Gateways Support Services has announced the appointment of Rohan Braddy as chief executive officer. Picture: Supplied

He said he looked forward to meeting and working with the board and staff, in conjunction with the people Gateways supports and their families and carers, to ensure Gateways was well placed to continue to deliver excellent services into the future.

Gateways also has offices in Melbourne and Warrnambool.

GENU

Key Geelong community service provider genU is ensnared in a police fraud probe.

Earlier this month the Geelong-based disability services provider confirmed it had reported suspected fraud targeting its finances to police.

GenU CEO Clare Amies

GenU chief executive officer Clare Amies said the matter was referred to police following an initial internal investigation triggered by suspicious activity.

The organisation said Victoria Police would work to determine the time frame of the alleged offending, which genU said was historical, as well as the significance of the amount involved.

“I want to assure our many clients, their families and carers that this activity does not in any way involve or compromise our services or service delivery, NDIS payments, or personal information,” she said at the time.

GenU has about 3600 staff at locations across Australia.

Originally published as Geelong disability providers like genU, Gateways face challenges