A National Disability Insurance Scheme (NDIS) provider in Tasmania, Oak Tasmania, has been handed a $1.1 million penalty following the admission of 474 reporting breaches, which left vulnerable clients at risk of injury or death. The Federal Court issued the penalty on Monday, highlighting a series of failures, including a diabetic client being hospitalized due to a lack of insulin administration, a leg fracture from improper equipment use, and a highly vulnerable client left unattended at a respite center.
The penalty, the largest ever imposed on an NDIS provider in Tasmania, was part of legal action initiated by the NDIS Quality and Safeguards Commission. The agreed facts presented in court revealed that Oak Tasmania delayed reporting the unauthorized use of restrictive practices on 370 occasions, with some reports taking up to 313 days, far exceeding the required five business days.
The Scale of Non-Compliance
Oak Tasmania’s compliance failures extended to missing deadlines for reporting five cases of unlawful sexual contact, four instances of sexual misconduct, and four cases of neglect involving individuals with disabilities. Justice Timothy McEvoy, in his judgment, underscored the potential for “significant detriment,” including death, due to these contraventions.
The penalty was a joint agreement between the NDIS Quality and Safeguards Commission and Oak Tasmania, which also agreed to cover the commission’s $200,000 legal expenses. While Justice McEvoy acknowledged that Oak Tasmania did not intentionally breach the law, he attributed the failures to inadequate reporting processes and guidelines.
Details of Specific Failures
The court documents outlined specific failures affecting five clients from 2021 to 2023, including neglect in switching catheter bags and providing inappropriate food to a client with dietary restrictions. These incidents accounted for $850,000 of the penalties, with the remaining $250,000 attributed to reporting failures.
NDIS Quality and Safeguards Commissioner Louise Glanville stated, “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.”
Oak Tasmania’s Response and Reforms
In response to the court proceedings, Oak Tasmania submitted documentation detailing the changes implemented to address the contraventions. These included comprehensive incident reporting and management procedures, a credentialing procedure, and a complex healthcare policy. Justice McEvoy acknowledged these reforms, noting that they demonstrated Oak’s commitment to improving its services.
“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,” the judgment reads. However, Justice McEvoy emphasized that well-written policies must be consistently adhered to.
Organizational Changes and Future Implications
The announcement comes as Oak Tasmania undergoes significant organizational changes. In September, Possability, Oak’s parent company, merged with Independence Australia Group (IAG). Following the merger, all directors of Possability and Oak resigned, making way for IAG nominee directors.
This development underscores the critical need for robust compliance frameworks within organizations serving vulnerable populations. The case serves as a cautionary tale for other NDIS providers, highlighting the importance of timely and accurate reporting to ensure client safety and regulatory compliance.
As Oak Tasmania implements its new procedures, the broader NDIS community will be watching closely to see how these changes impact service delivery and compliance. The case may also prompt other providers to reassess their own practices to avoid similar penalties and ensure the highest standards of care for individuals with disabilities.
