ACT disability providers are spending thousands of dollars to prepare for the National Disability Insurance Scheme, but fear service prices have been set too low jeopardising quality.
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Under the former block funding model, providers paid back unused government money, meaning they have never had the opportunity to accrue funds for new infrastructure, representatives from several organisations told a public hearing into the roll-out.
Koomarri CEO Miranda Garnett said her organisation had spent $500,000 in new computer systems and infrastructure, but the uncertainty over the NDIS design meant the investment was one of "blind faith".
The joint parliamentary committee chairman Mal Brough said the same situation had occurred during the Tasmanian NDIS trial, with providers struggling to make necessary investments.
Providers also complained of having to wear the costs when government money ceased before NDIS funds began.
DUO Services chief executive Cheryl Pollard said her organisation was $200,000 out of pocket.
Other providers spoke of the challenge and extra demands on staff of keeping the old system running for participants yet to transition to the NDIS while funds gradually reduced as well as setting up for the new scheme.
Community Connections executive director Ian Ross said transitioning clients to the NDIS was taking almost twice as long as anticipated for his staff.
Low service prices set by the National Disability Insurance Agency were another concern for providers with several criticising the "ludicrous" benchmarks and questioning why it was compared to the aged-care industry.
Focus ACT chief executive Tina Siver said the real cost of delivering home care was much more than the $40-an-hour fee under the scheme, and even a larger volume of clients wouldn't resolve the problem.
But NDIA general manager Liz Cairns defended the pricing saying it was not limited to aged care, but was instead based on prices similar to what governments were paying for disability supports.
Ms Siver said during her organisation's 24-years of receiving government funding, it had made savings through efficiencies and now needed extra funds to transition.
National Disability Services ACT manager Stephen Fox said the industry body had asked the ACT government to be more flexible with funds.
A new round of grants of up to $50,000 for each organisation to get ready for the NDIS were announced last week from the federal and ACT governments' sector development funding.
Mr Fox said he welcomed the funds but was yet to see the details of what could be covered.
