In a significant move for Western Australia's disability sector, human services provider APM has emerged victorious from a competitive auction to acquire the assets of the failed National Disability Insurance Scheme (NDIS) provider Therapy Focus.
Auction Outcome Secures Client Continuity
The deal, which was finalised after APM outbid rival suitor Brightwater Care Group, ensures the continuity of essential services for approximately 10,000 clients across Western Australia. Therapy Focus, a not-for-profit organisation, collapsed into voluntary administration in May 2024, citing financial pressures from NDIS pricing and operational costs.
Administrators from McGrathNicol, John Bumbak and Kathy Sozou, confirmed the sale to APM Human Services International Pty Ltd. The transaction is a critical step in safeguarding the jobs of around 700 employees, including therapists and support staff, whose positions were thrown into uncertainty by the administration.
Details of the Acquisition and Administration Process
Therapy Focus entered administration on May 7, 2024. The administrators immediately began a process to sell the business as a going concern to protect clients and staff. APM's successful bid, the value of which remains confidential, was selected as the preferred offer following a competitive auction process.
APM is a global human services company listed on the Australian Securities Exchange (ASX). Its Australian operations are extensive, encompassing employment, health, and disability services. The acquisition of Therapy Focus's assets significantly bolsters APM's footprint in the WA disability support market.
"The sale provides certainty for Therapy Focus clients and employees, and we are pleased to have achieved this outcome in a relatively short timeframe," said a spokesperson from the administrator, McGrathNicol.
Implications for the NDIS Sector and Future Operations
This acquisition occurs against a backdrop of intense scrutiny on the financial sustainability of NDIS providers. The collapse of Therapy Focus highlighted the challenges many organisations face with fixed pricing models and complex client needs.
For the thousands of clients and their families, the primary concern has been the uninterrupted delivery of crucial therapeutic services. APM has indicated its intention to integrate the operations and maintain service delivery, offering a reprieve from the anxiety caused by the administration.
The rival bidder, Brightwater Care Group, is also a major player in Western Australia's care sector. While unsuccessful in this auction, its participation underscored the strategic value of Therapy Focus's client base and service capabilities.
The administrators will now work with APM to facilitate a smooth transition of all client services and staff. The next steps involve seeking approval from the Therapeutic Goods Administration (TGA) for the transfer of certain registrations and ensuring all NDIS compliance requirements are met under the new ownership.
This outcome stabilises a vital part of WA's disability support landscape, ensuring that vulnerable members of the community continue to receive the care and therapy they depend on.
