Regis Healthcare shares plunge 34.6% after aged-care funding increase

  • Regis Healthcare criticized Australia’s 2.55% residential aged-care funding increase as inadequate for rising costs.
  • The AN-ACC starting price will rise from A$295.64 to A$303.19, lifting estimated average funding to about A$325 per resident per day.
  • Regis shares fell as much as 34.6% intraday, while UBS cut its target to A$5.95 from A$6.75 and kept a neutral rating.

Regis Healthcare shares fell sharply after Australia increased the Australian National Aged Care Classification starting price by 2.55%, which the company and UBS said was insufficient to cover inflation, health-sector wages and other residential aged-care costs. The Department of Health, Disability and Ageing will lift the starting price from A$295.64 ($211.83) to A$303.19 from October 1, raising estimated average funding from A$317 to about A$325 per resident per day. Reports cited different share-price moves, with the stock falling as much as 34.6% intraday and later reported down 27% at A$4.31. UBS cut its target price from A$6.75 to A$5.95, retained a neutral rating and warned that Regis and other providers could delay greenfield projects because of reduced certainty around returns. Regis said it would increase room prices and other service charges to mitigate margin pressure.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.