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09/11/18
09:51
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Originally posted by jogo:
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Sorry Mate, your comments have been completely discredited as the share price shows. In fact it has been as low as $2.03 in the past few days ( a new 12 month low). Obviously the market does not agree with your sentiments. I have to question that the Govt will fund high quality care to everyone going forward. With an ageing population and a decreasing ratio of income earners, there will be increaing fiscal pressures on Governments. Public concern, as currently expressed, for treatment of the aged will continue and there will be repeated investigations but I believe that the reality is that unless you have made plentiful provision for your personal care then you will only receive a basic care funded by the government. The amount that Government's give to aged care providers will continue to be restricted so that operators will remain under pressure and pass that on to their staff and facilitilies. Either that or go broke. Unless of course the provider targets the well funded client. I think EHE is of this nature and so can plan accordingly. Government financing will remain restricted and so EHE has to avoid bad publicity and ensure it treats everyone well with good facilities and distinguish itself from the operators caring for the less well off. At the same time I think that there will be increased bureacratic intervention as a result of authorities wanting to be seen to be doing something even while they do not want to face up the cost of making improvements. Investigations and reports will continue. History shows s that such reports rarely make any difference. EHE has to find a way of meeting the increased cost of such bureaucracy and passing it on to clients without becoming incompetitive against others in its niche market. Who said life is fair? Life is reality and reality often comes down to dollars and cents.
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The Government pressure on health care operators at the moment is having a major impact. In saying that, an ageing population will definitely lead to an increased number of elderly needing nursing homes, which subsequently should increase revenues in the future. The main focus at the moment is like you said, avoiding bad publicity and finding ways to offer competitive prices without going overboard. The way that EHE treat their customers will be crucial in the short-term.