A National Disability Insurance Scheme (NDIS) provider in Tasmania, Oak Tasmania, has been hit with a $1.1 million penalty after admitting to 474 compliance breaches. These breaches reportedly endangered vulnerable clients, with incidents including failure to administer insulin to a diabetic client, leading to hospitalization, and improper use of lifting devices resulting in injury.
Oak Tasmania, a subsidiary of the Possability Group, faced the penalty in the Federal Court on Monday. The action was initiated by the NDIS Quality and Safeguards Commission, marking the largest penalty issued to an NDIS provider in Tasmania. The court documents revealed that Oak Tasmania significantly delayed reporting the unauthorized use of restrictive practices on 370 occasions, sometimes taking up to 313 days to report incidents that should have been disclosed within five business days.
Details of Compliance Failures
The breaches included missed reporting deadlines for serious incidents such as unlawful sexual contact, sexual misconduct, and neglect of individuals with disabilities. Justice Timothy McEvoy, in his judgment, noted the potential for “significant detriment,” including death, due to these contraventions. The penalty was mutually agreed upon by the NDIS Quality and Safeguards Commission and Oak Tasmania, which also agreed to cover the commission’s $200,000 legal expenses.
“NDIS providers have a fundamental obligation to deliver safe and competent supports. Registered providers must also report serious incidents to the NDIS Commission, so risks can be identified and addressed.” — Louise Glanville, NDIS Quality and Safeguards Commissioner
Specific Incidents and Penalty Breakdown
The court’s agreed facts highlighted specific failures affecting five clients between 2021 and 2023. These included not switching catheter bags and providing inappropriate food to a client with dietary restrictions. Such incidents contributed to $850,000 of the total penalties, with reporting failures accounting for the remaining $250,000.
Oak Tasmania’s Response and Reforms
In response to the court proceedings, Oak Tasmania presented documentation of changes implemented to address these contraventions. The organization has introduced comprehensive incident reporting and management procedures, a credentialing process, and a complex healthcare policy. Justice McEvoy acknowledged these measures as appropriate steps towards improvement.
“It is apparent that Oak has also taken specific steps in respect of improving the supports and services provided to [the clients], including by way of training and communications with staff and, in some cases, disciplinary measures.” — Justice Timothy McEvoy
The changes reflect Oak Tasmania’s commitment to rectifying past errors and ensuring better compliance in the future. However, Justice McEvoy emphasized that well-written policies must be rigorously followed to be effective.
Organizational Changes and Future Outlook
The penalty and subsequent reforms come amid significant organizational changes for Oak Tasmania. In September, Possability merged with Independence Australia Group (IAG), resulting in the resignation of all Possability and Oak directors, who were replaced by IAG nominee directors. This merger represents a new chapter for the organization, potentially offering a fresh perspective on compliance and client care.
Looking forward, the case serves as a stark reminder of the critical importance of compliance in the disability care sector. The NDIS Quality and Safeguards Commission’s actions underscore the need for vigilance and accountability among providers to protect the welfare of vulnerable individuals.
As Oak Tasmania moves forward, the organization will need to maintain its focus on implementing and adhering to robust policies that ensure the safety and well-being of its clients, while also rebuilding trust within the community it serves.
