The ASX-listed operator’s half year results highlight the growing optimism in residential aged care – but they also underline the challenges facing the wider sector.
As we report in this issue, Regis reported a strong financial performance, buoyed by higher AN-ACC funding and increased occupancy.
Speaking to Regis’ Managing Director and CEO Dr Linda Mellors following the release of the results on Monday, the operator is actively pursuing both acquisitions and new developments.
Regis currently has several greenfield sites in the pipeline, which could see up to 560 new beds constructed.
Demand is also robust, with the operator achieving near full occupancy across its facilities, with vacancies limited to just one or two beds in most homes.
However, it’s not all smooth sailing. Regis will close its ageing 150-bed Bulimba facility later this year.
Linda also highlighted the rising costs associated with building new facilities, which have more than doubled since she joined Regis five years ago. The current cost per bed now exceeds $500,000.
To build or not to build?
Problem #1: At these prices, few operators outside of the larger players can afford to invest in new beds.
Unsurprisingly, just over 2,000 new beds were opened across the sector last year.
Problem #2: Many operators are either reporting full facilities or struggling with workforce shortages, hindering their ability to open additional beds.
Problem #3: Existing facilities are ageing quickly.
In 2024 alone, 10 facilities with 769 beds closed, with the age of the buildings often cited as a key reason for their closure.
Problem #4: Hospitals are also overwhelmed.
As we report exclusively in this week’s edition of SATURDAY, at least 1,600 older Australians are currently trapped in hospitals, waiting for an aged care bed.
Many of these patients have specialised needs, including dementia and chronic conditions, which make it difficult for them and their families to secure appropriate accommodation.
Who will care for these individuals? And what about the other Baby Boomers who will soon require support?
While operators like Regis are well-positioned to capitalise on the increasing demand for beds in the coming years, the solution must lie in expanding care options at home.
Delivering enhanced home care and acute care services where people live will help ease the pressure on the aged care and hospital system.
To explore the operators driving these solutions, look out for the next issue of SATURDAY, available at 12 pm tomorrow. Subscribe here if you haven’t already.
