The Estia Health Ltd (ASX: EHE) share price is sinking lower on Monday after the release of a coronavirus update.
In late afternoon trade the aged care provider’s shares are down 7% to $1.47.
This latest decline means that the Estia Health share price has now lost 50% of its value since peaking at a 52-week high of $2.93.
What did Estia Health announce?
This morning Estia Health provided an update on the impact of the coronavirus outbreak in Victoria on its operations.
According to the release, the company has been issued with notices from the Aged Care Quality and Safety Commission in relation to COVID-19 outbreaks at its homes in Heidelberg West and Ardeer.
It also confirmed that it implemented the requirements within the notices, which relate to the monitoring and management of the outbreaks.
These requirements include not admitting new residents into the home until the Victorian Public Health Unit has declared the home cleared of COVID-19; the immediate appointment of an independent adviser to assist with ensuring the health and wellbeing of residents; and providing daily and weekly reports to the Commission on managing the outbreak.
A very challenging time.
Management commented: “This is a very challenging time for our residents and their families. We have added extra support so that families are regularly updated about their loved ones, including those residents that have been transferred to hospital. We are providing daily updates to family members on their comfort and condition; and families can access a dedicated support line for the home.”
It also advised the market that it isn’t possible to quantify the full financial impact on the company arising from the “rapidly evolving COVID-19 situation in Victoria.”
A further update is likely to be given with the release its FY 2020 full year results next month. At present this is scheduled to occur on 18 August 2020.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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