Shares in aged care operators took a steep dive following the announcement of a royal commission into the industry.
A short time ago, Japara was down 15.8% to $1.41, Regis 14% to $3.11, and Estia 15.6% to $2.49.
Prime Minister Scott Morrison at the weekend announced a royal commission to look into Australia’s aged care sector followed reports of the mistreatment of vulnerable elderly.
Aged care centres have been in the spotlight since the Oakden nursing home scandal with the alleged abuse of residents. Oakden was closed a year ago.
In 2017-18, aged care spending was estimated at $18.6 billion. Over the next five years funding will grow by $5 billion to $23.6 billion.
Putting in place clear requirements for better standards and providing the resources and powers to police those standards will always shine a light on the problems that exist,” Morrison said in a joint statement with Health Minister Greg Hunt and Aged Care Minister Ken Wyatt this morning.
“That is the whole point. These findings demonstrate the effectiveness of the measures we have been taking.
“However, incidences of older people being hurt by failures of care simply cannot be explained or excused.”