Recently, institutional care for people with disabilities has been in the centre of controversial debate. Major hospital-like institutions, in particular, are being criticized for fostering hospitalization and restricting the autonomy of people with disabilities in an unwarrented way. In Austrias socio-political discourse even closing specialized institutions is being considered.It is undisputed, that people with disabilities have varied needs concerning accomodation and care, depending on their respective handicaps. To provide adequate accommodation for persons with disabilities, individual requirements have to be taken into account. In this context, the moral-philosophical concept of Principlism by Tom L Beauchamp and James F. Childress provides useful orientation. The question, whether a specific form of accommodation infringes human dignity, should be tackled in relation to the four core principles (nonmaleficence, autonomy, beneficence and justice). The appropriate findings will lead to the conclusion, that the range of eligible accommodation should vary from mostly autonomous and group accommodation to hospital-like institutions to meet individual requirements.Closing down specialized institutions may result in serious disadvantages for people with disabilities. Therefore it has to be considered ethically doubtful, if available accommodation and care are only adequate for people with minor disabilities in the future .