National Disability Insurance Scheme (NDIS) provider Integrity Care has been fined $12,600 for failing to report the death of Adelaide care recipient Ann Marie Smith.
The NDIS Quality and Safeguards Commission said it was only made aware of Ms Smith's appalling death on April 20, a fortnight after she died.
The case was reported by the Public Advocate and the Health and Community Service Complaints Commissioner.
Ms Smith, 54, died on April 6 of severe septic shock, multi-organ failure, severe pressure sores, malnutrition and issues connected with her cerebral palsy.
Police believe she may have been stuck in a cane chair 24-hours-a-day for more than a year in her Kensington Park home and detectives have opened a manslaughter investigation.
Integrity Care suspended Ms Smith's carer and recently sacked her.
The NDIS Quality and Safeguards Commission said Integrity Care, also known as Integrity Care SA, has been issued an infringement notice for failing to notify it of Ms Smith's death within 24 hours of becoming aware of it.
"By law, Integrity Care can choose to pay the infringement notice or not," NDIS Commissioner Graeme Head said.
"If they choose not to pay then we may initiate court proceedings seeking a civil penalty for the alleged contravention.
"The maximum penalty that a court could impose for a contravention of failing to notify us is $262,500."
Mr Head said reporting serious incidents is a "critical safeguarding mechanism" for people with a disability.
"There have been clear failings in the support given to Ms Smith that warrant our thorough and careful investigation," he said.
The NDIS Commission has also issued a compliance notice to Integrity Care, requiring it to do a range of things to protect the safety of its other clients with disabilities.
