Example tooltip content.

General update

Published

March 16, 2023

Sector spotlight: what are the hidden risks of using unregistered providers?

This article explores the rising trend of using unregistered providers within NDIS plans, highlighting the associated benefits and significant risks. The Disability Royal Commission has recently raised concerns about these risks, underscoring the importance of understanding what using unregistered providers means for participants.

A few months ago, we discussed using unregistered providers in your NDIS Plan. This trend is becoming more popular, with noticeable benefits, particularly in terms of saving money. However, the risks associated with this choice have been more recently emphasized, even drawing the attention of the Disability Royal Commission.

What does "unregistered" mean?

With the overwhelming amount of information, rules, and regulations surrounding the NDIS, it can be challenging to understand what "unregistered" really means and even harder to navigate the NDIS marketplace when seeking services and products for you or a loved one.

In simple terms, Registered Providers (like CPSN) are approved by the National Disability Insurance Agency (NDIA) to provide services and/or support to Plan-Managed or NDIA Managed participants. Unregistered providers, however, may not be registered with the NDIS but can provide support and services to self-managed and plan-managed participants.

Why do some providers choose not to register?

Although registering a service might seem like the logical approach, many providers prefer not to register for various reasons. Some of the benefits unregistered providers have mentioned include:

  • Less paperwork, allowing for a quicker start-up process
  • No auditing or license fees
  • Insurance is not mandatory
  • The ability to offer better prices as they are not bound by NDIS Price Guides

These benefits appeal particularly to participants looking to conserve their funding. However, focusing solely on price can overlook the inherent risks. Unregistered providers may not be subject to the same audits and could lack necessary public liability insurance.

For example, if a support worker is not insured for public liability, the consumer might be held responsible in case of an on-shift incident. Additionally, unregistered providers cannot always offer the same level of services, such as:

  • Specialist disability accommodation
  • Supports or services involving regulated restrictive practices
  • Specialist behavior supports that require behavior support assessments or plans

The risks of inadequate screening

Last year, ABC News covered a story about a 17-year-old girl with autism who was sexually assaulted by her unregistered support worker. The worker had not undergone necessary background checks or working-with-children checks required of registered providers.

Since these checks are not mandatory for unregistered providers, the onus is on the service recipients to properly screen their workers.

Fewer safeguards, poorer compliance

While the NDIS is often criticized for its stringent measures, lower compliance among unregistered providers can lead to lower-quality services, and in some cases, an increased risk of abuse and neglect. Instances of abuse and neglect have been well-documented by the Disability Royal Commission, which received nearly 8,000 submissions since its inception in April 2019.

The NDIS Quality and Safeguards Commission works with the Fraud Fusion Taskforce to identify fraudulent behavior and abuses of power. However, unregistered providers do not adhere to these safeguards and can remain undetected.

Unclear complaint process

While complaints can be made against unregistered providers, they are less likely to have clear procedures, making it harder for consumers to resolve issues. Since July 1st, 2019, the Disability Services Commissioner (DSC) has been able to receive complaints about unregistered providers. In response, unregistered providers are required to:

  • Adhere to the NDIS Code of Conduct
  • Have a complaints process in place
  • Consider conducting voluntary worker screening checks

However, unregistered providers are not required to report incidents or undergo audits against disability practice standards. Complaints about unregistered providers can be found on the DSC website.

How do you know you're with a Registered Provider?

You can easily identify a registered provider by looking for the registered provider logo (see attached image). If you're unsure, you can always contact the provider directly via phone or email.

Want to learn more about using a registered provider? Contact CPSN at 03 9478 1001 or cpsn@cpsn.org.au.

This article first appeared on disabilitysupportworkers.org.au on March 17, 2023.

CPSN

Join the CPSN Community

Sign up to receive the latest news, resources, and support for the cerebral palsy community. Join a network that champions inclusion and empowers individuals every day.

Sign up

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.