Regis Healthcare criticises government aged care funding bump
- Aged care provider Regis Healthcare labelled a new 2.55% federal funding increase as disappointing.
- The company plans to raise room prices to protect profitability against sector inflation.
- Industry leaders warned the current funding level restricts the construction of required care beds.
Regis Healthcare (ASX:REG) stated that a 2.55% government funding increase to $303.19 per day falls well below cost inflation across the sector.
The government introduced the price adjustment following an annual pricing determination, while maintaining current care minute requirements alongside fixed and variable funding categories.
"Put very simply, this decision is not good enough and lets down both providers and the older people who rely on them every day," said Ageing Australia CEO Tom Symondson.
To manage margin pressures, Regis stated that it will increase room prices and expand its Higher Everyday Living Fee services.
Following the announcement, the Regis Healthcare share price was unchanged at $3.97.
The company stated that adequate sector funding remains necessary to encourage new facility developments as the national population ages.
