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NDIS is a ‘train wreck’, won’t lead to profit-making providers leaving, industry expert warns

Not-for-profit NDIS providers are leaving the system, says Dr Martin LavertyHe helped design the national disability insurance scheme and now runs registered provider Aruma.

Speaking to the ABC’s AM programme, Laverty said the NDIS situation was a “train wreck”, with not-for-profit organizations making losses for the fifth year running.

Laverty says a key issue is the pricing set by the national disability insurance agency (NDIA).

In the five years just ended, registered nonprofits lost 12%. This is unsustainable. And what we’re seeing now is some nonprofits choosing to leave. Others are on the edge and the National Disability Insurance Corporation has put the government in a really difficult position. The reason for these losses is the price. NDIA operates a flawed pricing system.”

This is a train wreck. This means that for those of us who were involved in setting up the plan, we are horrified at what is happening.

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