The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
9
print
Print
ResidentialAna NarvaezMon 17 Sep 18

Aged Care Providers Hit by Royal Commission News

b3c15d37-9c59-468f-a68f-b7c9d7c19d5b

Stocks in aged care providers tanked on Monday, hit by news of the Royal Commission into the aged care sector.

Prime Minister Scott Morrison made the announcement on Sunday following a string of “disturbing” revelations into elderly abuse in the residential aged care sector.

The inquiry will also cover care for young people with disabilities living in aged care settings.

ASX-listed aged care providers Regis, Estia, Japara and Aveo lost nearly $500 million in combined market value on Monday, with stocks tumbling as much as 21 per cent after the announcement.

Estia closed 18.6 per cent down at $2.41, with Japara and Regis closing 17 per cent down. Aveo Group dropped 7.2 per cent to $2.06.

The sector provides services to more than 1.3 million Australians, with 240,000 people currently in aged care.

The decision to set up a royal commission comes ahead of Four Corners’ latest two-part investigation into the aged care sector which will air on Monday night.

Related: Lendlease Announce Partnership to Develop Aged-Care

Prime Minister Scott Morrison, Health Minister Greg Hunt and Aged Care Minister Ken Wyatt announced the Royal Commission on Sunday.Image: AAP Image / Mick Tsikas


The Urban Developer reached out to aged care providers Regis Healthcare, Japara and Aveo for comment.

A spokesperson for Aveo said that the company is not planning to respond to the announcement .

Regis Healthcare said that the company supports the establishment of the royal commission.

“We will work with the Royal Commission and government to ensure the aged care industry is sustainable into the future.”

Japara did not respond at the time of publication.

Aged care provider Estia, whose shares fell 18.6 per cent on Monday, released a statement in support of the royal commission.

Estia chief executive Norah Barlow said the group welcomed scrutiny of the sector and any measures that would help ensure the safety and quality care of its residents.

“Caring for the elderly is a privilege and enormous responsibility. We will continue to work with government to build a viable sector that older Australians deserve,” Barlow said.

Chief executive of aged care industry group Leading Age Services Australia Sean Rooney said that there is a “mismatch” between the needs and expectations of older Australians and the services that aged care providers are funded to deliver.

“We have repeatedly told government that the aged care system settings have not kept pace with the increase in demand for care and services, driven by the growing numbers of older Australians in our communities.”

Australian Unity echoed Leading Age Services Australia’s call to combat the shortfall in aged care workers.

“We particularly welcome any focus on how Australia addresses the looming shortfall in aged care workers,” an Australian Unity spokesperson said.

The Australian Medical Association, Disabled People’s Organisations Australia and Dementia Australia joined peak body for the not-for-profit aged care sector, Aged & Community Services Australia, in welcoming the royal commission.

ResidentialAustraliaPolicyReal EstateSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy on the Sound of Cannon: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
A Singapore-based company is believed to be the new owner, paying $68 million for the former Crown Group holding…
LATEST
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
4 Min
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
3 Min
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
3 Min
Finance

HCP: Real Projects, Real People, Real Returns

Partner Content
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/aged-care-providers-hit-by-royal-commission-announcement-