Vulnerable Australians 'dropped at hospital' as NDIS providers face financial ruin

Major NDIS providers are facing financial collapse after being forced to choose between paying for emergency care themselves or leaving vulnerable clients without support. See who is affected.

Underfunded NDIS plans are increasingly leaving providers with the horrific choice of paying for vital care for participants themselves, dropping them at a hospital or leaving them to suffer, an exclusive report has found.

More than 77 per cent of providers delivered unfunded services last year, at an average cost of almost $500,000 a provider, according to the State of the Disability Sector report out on Monday.

The National Disability Services (NDS) behind the report, and the peak body for non-government disability providers, said this increasing financial burden being placed on providers – plus a six year pay freeze on how much they can charge for services – is leading to organisations with decades of experience struggling to stay afloat.

In the last six months the number of providers entering administration, significantly scaling back or closing their NDIS services has increased, impacting thousands of people.

Therapy Focus us one of the providers to have gone into voluntary administration in the past six months.

Providers who have gone into voluntary administration in the last six months include Annecto in Victoria, Therapy Focus in WA, MS Society South Australia and Northern Territory and Momentum Collective in NSW and Queensland.

Bedford in SA required a government bailout.

While organisations that have kept operating but have fully exited the NDIS include Anglicare WA and Centrecare QLD.

These organisations alone supported more than 5000 participants.

NDS CEO Michael Perusco said without structural adjustment, the NDIS risks losing the very providers it depends on.

“This includes providers who will be critical to the successful delivery of supports that sit outside of the NDIS, for example for children, families and people with psychosocial disability as these programs evolve,” Mr Perusco said.

Michael Perusco, National Disability Services CEO

He said the findings further validate the ongoing calls from the sector to prioritise reforms recommended by the NDIS Review, including independent pricing and regulatory reform as well as a temporary loading to avoid further exits of quality providers.

Endeavour Foundation, based in Queensland, remains more than a million dollars out-of-pocket after arranging emergency help during Cyclone Alfred.

Executive general manager Leanne Rutherford said they had to supply close to 730 people with disabilities with intensive support over the one event; increasing staff, storm proofing accommodation, supplying generators and running 24 hours a day to look after those in need.

Leanne Rutherford, executive general manager at the Endeavour Foundation. Picture: Supplied

She said other providers left people with a disability alone at home without support, or just dropped them off at the hospital.

“During the cyclone, the NDIA agreed with the need to provide reasonable and necessary supports to keep people safe, and that they would support these costs,” Ms Rutherford said. “And yet afterwards, our claims were rejected and the agency would not cover this cost.

“We are not talking about people going out for coffee and cake.

“We provided help with toileting, eating and moving around the home, and additional support for people with significant autism or intellectual disability who can experience extreme distress during natural disasters.

“We’ve seen time and again that we need a buffer to care for people’s safety in emergencies, but still the NDIA makes no allowance for this.

“It’s clear to everyone that this can’t continue.”

A spokesman for National Disability Insurance Agency which runs the scheme said while the NDIS was not responsible for disaster relief or emergency funding, it acknowledged some participants may require increased disability related in-home supports during these events.

“Participants may also request a review of their plan funding if their circumstances have changed,” the spokesman said.

Originally published as Vulnerable Australians 'dropped at hospital' as NDIS providers face financial ruin