Regis Shares Fall on Aged Care Funding
Regis Healthcare shares dropped to a two-year low after stating that a government funding increase fails to cover rising sector costs and inflation. The company plans to raise room prices to offset ongoing margin pressure.
Insights:
Regis Healthcare shares fell 34.6% to a more than two-year low on Wednesday morning after the company said a government funding increase would trail sector inflation. The drop made the provider the worst performer on the local ordinaries index, which rose 0.4%. The selloff highlights mounting margin pressures across Australia's aged-care sector as operating expenses outpace state subsidies.
