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05-05-2017, 02:07 PM
#181
At the end of the day management is not stupid. Increase in wages will only incur extra costs onto the elderly. No business will just suck up the cost of increased wages. They will pass it on and it will be business as usual.
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05-05-2017, 02:11 PM
#182
Originally Posted by Ggcc
At the end of the day management is not stupid. Increase in wages will only incur extra costs onto the elderly. No business will just suck up the cost of increased wages. They will pass it on and it will be business as usual.
You can only pass it onto private paying residents not those receiving the residential care subsidy.
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05-05-2017, 02:21 PM
#183
someone will have to foot the bill and it would be ridiculous to think the shareholders should pay for it. I am all for everyone's wages increasing,but it always comes at a cost to either the customer or the government (The government is us as a nation). You would know where they would get the money from more than I would couta. I appreciate your input on this 😊
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05-05-2017, 02:24 PM
#184
Originally Posted by couta1
You can only pass it onto private paying residents not those receiving the residential care subsidy.
Further to the previous quote from the prospectus .....
Oceania’s current intention is to seek to recover the cost of any potential wage increases for staffthat may not be covered by DHB funding by applying for a variation to its funding contracts withthe DHBs
For clarity, nothing I say is advice....
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05-05-2017, 02:39 PM
#185
Originally Posted by peat
Further to the previous quote from the prospectus .....
Oceania’s current intention is to seek to recover the cost of any potential wage increases for staffthat may not be covered by DHB funding by applying for a variation to its funding contracts withthe DHBs
Good luck trying to get any extra funding out of cash strapped DHB's. Aged care is low on their priority list, they don't want to pass on an extra cent above the Govt allocation. Remember this industry is still grossly underfunded by the Govt.
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05-05-2017, 02:48 PM
#186
Originally Posted by Ggcc
someone will have to foot the bill and it would be ridiculous to think the shareholders should pay for it. I am all for everyone's wages increasing,but it always comes at a cost to either the customer or the government (The government is us as a nation). You would know where they would get the money from more than I would couta. I appreciate your input on this
Until you get your property portfolio steaming along, extra money required can only be obtained by passing on some cost to private paying residents and charging extra for premium rooms, but the main factor is keeping the wages to revenue percentage down and focussing on consumable wastage.
Last edited by couta1; 05-05-2017 at 02:51 PM.
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05-05-2017, 03:04 PM
#187
Originally Posted by couta1
Until you get your property portfolio steaming along, extra money required can only be obtained by passing on some cost to private paying residents and charging extra for premium rooms, but the main factor is keeping the wages to revenue percentage down and focussing on consumable wastage.
I am not certain but isn't there a "maximum contribution" set by Director General of Health for those whose assets/income exceed the thresh-hold allowed for the residential care subsidy. So it would be up to the government to decide to pass on the extra costs to those who are not eligible for a care subsidy?
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05-05-2017, 03:07 PM
#188
Originally Posted by couta1
Growth of 40% for FY2018, yeah right, it ain't going to happen.
Wages aside
from the prospectus
"approximately 30.4% of Oceania’s Pro forma Underlying EBITDA (pre corporate / other costs)is derived from the sale and re-sale of Units in FY2017F, increasing to approximately 43.8% inFY2018F "
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05-05-2017, 03:23 PM
#189
".....the DHBs, as well as by achieving higher productivity levels and lower temporary staf fing costs inits aged care business. "
Pretty sure this happens where my mother is but def haven't confirmed it, like moving nurses backwards and forwards between the various "homes' in the hospital care section.
Disappointing debut for OCA but that happened to ARV as well as TJ pointed out and the whole sector has come off the boil atp with most under the M/A's. Still way more sellers than buyers showing so will watch for a while and see if it all flushes out and we have an ARV like rerate hopefully.
Last edited by Joshuatree; 05-05-2017 at 06:42 PM.
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05-05-2017, 03:43 PM
#190
And as just pointed out to me, the Auckland property mkt is going backwards atm so that along with the wage increase as an unfortunate timing for an IPO is an understatement indeed.
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