A provider of National Disability Insurance Scheme services for hundreds of people in Tasmania is quitting the market, saying it cannot continue to subsidise the federally funded scheme.
Anglicare Tasmania today announced it would no longer provide support coordination and "most" NDIS community and independent living services after a three-month transition period.
The change will affect 420 clients and about 220 employees.
Anglicare has also confirmed it is selling two of its buildings — 18 Watchorn Street, Hobart and 116 Elizabeth Street, Launceston, which is adjacent to Anglicare's main Launceston office — to fund the transition out of NDIS services.
The services housed in those buildings will be moved into other Anglicare buildings.
In a statement, Anglicare said it was "working collaboratively with disability services provider genU to give affected clients the opportunity to easily transfer their services without interruption".
The union representing disability workers said it would be a "significant shift in the provision" of disability services in Tasmania.
The Health and Community Services Union (HCSU) also raised concerns about the creation of "super organisations" with the exit of smaller service providers.
Anglicare said it was a strong supporter of the NDIS but that federal funding was not covering its expenses.
"Over the past two years Anglicare has subsidised the delivery of NDIS-related services. Further subsidy of NDIS service delivery is not sustainable long-term," the company said in a statement.
"Anglicare's view is that with fewer disability providers in the Tasmanian market, it will increasing the remaining organisations' ability to succeed."
'Major systemic problems with the NDIS'
Anglicare chief executive Chris Jones said the federal government had "recognised there are some major systemic problems with the NDIS".
"There is a review underway to examine the cost pressures and the various barriers affecting the scheme's current operation. This is an important review that Anglicare Tasmania hopes will lead to significant improvements for people with a disability."
The federal government last year brought forward a planned review of the NDIS.
The review will examine the design, operations and sustainability of the scheme and look at ways to build a more "responsive, supportive and sustainable market and workforce".
The reviewers' report is due by October.
HCSU state secretary Tim Jacobson described Anglicare's move as a "major decision by one of the biggest players in the Tasmanian disability sector".
"What we're seeing here is a significant shift in the provision of disability services towards very large super organisations," he said.
"We've got now new super organisations being created, which will reduce the ability for people to have choice in who provides their disability services in the community into the future.
"That's a significant issue and undermines the fundamental principle that the NDIS was built upon."
Anglicare said there would be "numerous employment opportunities for affected Anglicare staff to join genU to continue delivering supports to transferring clients".
Anglicare said it expected support coordination clients would have their new arrangements in place by February 11, and community and supported independent living clients would have their new arrangements in place by March 31.
"Anglicare will also keep delivering NDIS-funded supports to those at Curraghmore facility in Devonport, Motor Accidents Insurance Board (MAIB) clients, people living in MAIB properties and through our counselling service."
Geelong-based genU said it welcomed the opportunity to play a more active role in Tasmania.
"The priority of both genU and Anglicare Tasmania is to ensure a smooth transition and continuity of supports for clients and employment for affected staff," genU chief executive Clare Amies said.
Ms Amies said genU was also "in active discussions to unite operations with Li-Ve Tasmania" — which operates disability group homes.
Disability advocate Jane Wardlaw said there could be benefits to bringing a large provider like genU to Tasmania, such as bringing more expertise to the state and being able to offer a broader range of services.
"The main thing that we want to see occur is more accountability and transparency in the market and we also need to make sure that we have a variety of support agencies available for people," Ms Wardlaw said.
"When it comes down to it at the end of the day though, it's all about the quality of support … that is very much around rights-based support, it's very individualised, and it's meeting people's needs. So the more players we have in the market, the more opportunities people have for choice and control.
"It's important that people with NDIS plans are able to access a variety of services from a range of different service providers. The last thing we want to see is a person being stuck in the vacuum of just the one provider providing all of life's services."
