How Is Regis Healthcare Thriving Ahead of Major Aged Care Reforms?

Strong Financial Momentum in H1 FY25

Regis Healthcare has reported a robust financial performance for the first half of fiscal 2025, with revenue from services climbing 17.5% to $564.2 million and underlying EBITDA rising 30.7% to $68.1 million. The company’s underlying EBIT and reported net profit after tax (NPAT) also showed impressive gains, up 522.9% and 300.6% respectively compared to the prior corresponding period. These figures underscore Regis’ operational strength amid a challenging aged care environment.

Occupancy rates remain a highlight, with mature homes averaging 95.7% occupancy, a notable improvement from 93.6% a year earlier. This stability is complemented by an increase in average care minutes per resident, reaching 215.3 minutes in Q2 FY25, alongside an improved average star rating of 3.56, reflecting enhanced quality of care.

Navigating Regulatory Shifts with the New Aged Care Act

From 1 July 2025, the new Aged Care Act will reshape funding and operational frameworks across the sector. Regis is preparing for the introduction of the Higher Everyday Living Fee (HELF), which replaces previous additional and extra service fees for new residents, with existing residents transitioning by mid-2026. The Act also increases the maximum room price without regulatory approval from $550,000 to $750,000 and reintroduces RAD retention, allowing providers to retain 2% per annum of new Refundable Accommodation Deposits for up to five years.

Government reforms aim to better cover clinical care costs, including Enterprise Bargaining Agreement (EBA) wage increases, through the Australian National Aged Care Classification (AN-ACC) funding model. Regis has already passed on recent AN-ACC increases to nursing staff wages, following Fair Work Commission determinations, which include phased pay rises of up to 25.5% for nurses and 13.5% for care workers. These changes are critical to maintaining workforce stability and meeting care standards.

Strategic Growth and Development Pipeline

Regis continues to pursue disciplined growth through acquisitions and greenfield developments. The ramp-up of the newly opened Regis Camberwell facility in Victoria is progressing ahead of plan, with 58 residents as of April 2025, representing over half occupancy. The company has secured multiple development sites across Queensland, New South Wales, Victoria, and South Australia, with construction underway or planned through to 2029. These projects target high-demand catchments and leverage the removal of bed licensing restrictions, allowing Regis to be selective and strategic in expanding its portfolio.

Market dynamics favor larger providers like Regis, as consolidation accelerates and smaller operators exit the sector. The company’s strong balance sheet, with net cash of $179.9 million at December 2024, supports its capacity to invest in quality assets and scale home care offerings nationally.

Outlook: Demographics, Demand, and Workforce

Looking ahead, Regis is well positioned to benefit from demographic trends driving demand for aged care, particularly as Baby Boomers age and require more complex services. Occupancy levels are expected to remain high and stable, supported by targeted capital expenditure to enhance facilities and justify premium pricing. Workforce availability is improving, with reduced reliance on agency staff and lower turnover, thanks in part to wage increases and enhanced training initiatives.

Regis’ strategic priorities emphasize personalised care, quality environments, and operational excellence, underpinned by digital innovation and sustainable business practices. The company’s cautious yet growth-oriented approach aims to navigate regulatory changes while delivering value to residents and shareholders alike.