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- Aged care provider Regis Healthcare (REG) incurs around $14 million in costs this year due to the impacts of COVID-19
- The COVID-19 related costs account for outbreak homes from January 1 to April 30, and Regis is still in the process of preparing claims for the Department of Health
- The company anticipates further COVID-19 related outbreak costs will be incurred in both May and June
- Regis says it was told by the Department of Health large volumes of COVID-19 related grant reimbursements are currently being processed, which is causing significant delays in approving claims
- Regis Healthcare has ended the day up 3.95 per cent, trading at $2.37
Aged care provider Regis Healthcare (REG) has incurred around $14 million in costs this year due to the impacts of COVID-19.
As outlined in its quarterly financial report, Regis incurred COVID-19 related costs totalling $4.5 million during the first half of the current financial year, which was made up of incremental staff expenses, personal protective equipment, and infection prevention and control.
Of this amount, $3.3 million was eligible for the Australian Government COVID-19 outbreak grant, which received the green light from the Department of Health.
However, Regis incurred approximately $14 million of COVID-19 related costs in outbreak homes for the period from January 1, 2022 to April 30, 2022, and is still in the process of preparing claims for the Department of Health.
The company said it anticipates further COVID-19 related outbreak costs will be incurred in both May and June.
As a result of the ongoing Omicron outbreak from mid-December, the company implemented outbreak management plans across impacted homes.
Regis said it was told by the Department of Health that large volumes of COVID-19-related grant reimbursements are currently being processed, which is causing significant delays in approving claims.
While the outbreak continues to impact a number of Regis’ residential aged care homes, there has also been a consequential impact on occupancy levels in a number of homes, particularly in New South Wales.
As previously reported, average occupancy for the six-month period December 31, 2021 was 89.3 per cent, while the average occupancy for the four months ended April 30, 2022 was 90.2 per cent.
Regis Healthcare ended the day up 3.95 per cent, trading at $2.37.
