One of the state's biggest disability services provider, Anglicare Tasmania, has announced that it will no longer support 420 clients on the National Disability Insurance Scheme after March 31.
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The decision for the social services body to transition staff and clients to Victorian-based provider genU has led to concerns about future disability service provision in the state, particularly in regional areas.
In a statement released on Wednesday, Anglicare said it would assist affected clients to move their services to a new provider of their choice over the next three months.
It said it was anticipated Support Coordination clients would be under new arrangements by Feburary 11 and Support Independent Living clients by March 31.
As part of the transition, Anglicare chief executive Chris Jones said it would put sell its property in at 116 Elizabeth Street in Launceston and its Watchorn Street building in Hobart to fund the cost linked to the changes.
Anglicare is to retain support services to NDIS clients at Devonport's Curraghmore facility.
Dr Jones said there would be employment opportunities for Anglicare employees to transfer their employment to genU.
He said EBA entitlements would be transferred as would continuity of service, meaning employees would retain leave entitlements.
The body in part blamed NDIS pricing for its decision.
"Over the past two years, Anglicare has subsidised the delivery of NDIS-related services," it said. "Further subsidy of NDIS service delivery is not sustainable long-term."
genU chief executive Clare Amies said the clients and staff who choose to join genU would be transitioned across by the end of March.
She said the organisation had been in discussions to unite operations with Li-Ve Tasmania. Health and Community Services Union state secretary Tim Jacobson said the shift of NDIS clients from one, or potentially two organisations, to a larger organisation took choice out of the market.
"It's possible that we'll use lose two providers in the state, which limits the choice that consumers have and that undermines the general principle that the NDIS was based upon," he said.
Disability Voices Tasmania executive officer Vaughn Bennison said there were not enough service providers in Tasmania to fulfill disability needs as it was.
"I am concerned that this move from Anglicare will further weaken the service provider market and leave NDIS participants without necessary support services long-term," he said.
"I am concerned about the long-term sustainability of bringing a new organisation into play, particularly where remote and regional clients might fall through the cracks."
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