Aged care operators take a tumble
A number of analysts have downgraded Australia's aged care operators following a 'clarification' from the government on the types of fees that can be charged: (VIEW LINK) The note from the Department of Health explains that particular types of fees, known as "capital refurbishment fees" or "asset replacement contributions" can no longer be charged to residents. Each of the three aged care operators is estimated to charge around $15 per resident per day in fees appear to meet the description. This is the latest in a string of major falls that have wiped off $1.95B (49%) from the combined market capitalisations of Japara Healthcare, Regis Healthcare, and Estia Health since the start of the year. Today alone the fall is $440m (-21.8%). It's worth noting that Ben Griffiths from Eley Griffiths Group raised the risks in the aged care sector at Livewire Live in May: (VIEW LINK)
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Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.
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