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Laura Fergusson Rehabilitation is closing in Auckland, Waikato and Whanganui, and only 14 of the 124 people needing rehabilitation and respite care have found somewhere else to go.
The non-profit organisation has provided care to thousands of New Zealanders with disabilities and those affected by strokes, brain and spinal injuries, since it began in the 1960s.
Some families say there are limited options for their severally disabled children. Uncertainty and poor communication is adding to their stress, they told Checkpoint.
"I've been so stressed and upset over this, I've lost sleep," Mandy Brookland said.
Her son Blake is in his 20s. He cannot speak or walk, and is entirely reliant on his parents to look after him.
Laura Fergusson's respite service is the only break Blake's parents get, Mandy said.
"It's more of a mental and emotional break than the physical help. And it's also the only time my husband and I get to ourselves, when he's there, because we don't get any other help."
Parents have told Checkpoint communication between Laura Fergusson, the Ministry of Health and parents has not been clear.
One Ministry agent for disability services – the Taikura Trust – had told a parent it did not know Laura Fergusson Rehabilitation was closing.
The Ministry of Health's director general Ashley Bloomfield told Checkpoint the Ministry has been trying to work closely with clients to find a new service provider.
But one provider – Geneva – only had two respite beds available.
Dr Bloomfield said respite beds were used by a number of people over the course of a month, and Ministry staff are working with families of Laura Fergusson clients to ensure they can get help from a range of providers.
The sudden announcement of Laura Fergusson Rehabilitation's closure has left many clients and their families asking if the Ministry of Health should be providing disability rehabilitation and respite services directly.
Dr Bloomfield said the Ministry's focus is connecting people with providers. "Our job of course is to ensure that we can get providers who are experts and specialise in providing these services, as in any sector, including the health sector, mental health sector. We have a range of both commercial and NGOs, not-for-profit trusts providing the services."
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There has been confusion over the reasons behind Laura Fergusson Rehabilitation's closure. Board members told Checkpoint there was not enough money to keep the service going, and no extra funding from the Ministry of Health.
But the Ministry of Health's Deputy Director-General for Disability Adri Isbister said the Trust did not ask for extra help and only told the Ministry of the planned closure after the decision was already made.
Dr Bloomfield said he has offered to meet with the board of Laura Fergusson Rehabilitation. He has not met with the board yet, but said the offer still stands.