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$2.38 estia health limited

After the Four Corners Report? Why would EHE escape when AOG and...

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JCoure

12,929 Posts.

132

24/09/18

21:15

Post #: 35810837
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Originally posted by CaptainBarnacles ↑

yeah - it is the government who is taking the risk - not the resident. The resident is probably getting rewarded appropriately with the fee reduction, but the government is guaranteeing the RAD liability, and the listed aged care providers appear to be at levels that would command a 10 to 15% ish rate in normal commercial markets IMO. So there is a risk that the gov will gradually start to charge a guarantee fee based on normal commercial rates at some stage. Maybe they have the gun to the governments head, and it will not happen. Who knows - I think it is a huge distortion based on mispriced and subsidised capital that will get more and more distorted over time - but it also may be a cost the government decides it is still willing to bear to get more beds.

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After the Four Corners Report? Why would EHE escape when AOG and LLC will not?

EHE Price at posting: $2.36 Sentiment: Sell Disclosure: Not Held
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