These ASX healthcare stocks are set to thrive as the population ages

Australia’s ageing population is one of the most predictable long-term trends in our economic landscape. The Australian Bureau of Statistics predicts that older people will make up 21% to 23% of the population by 2066. This creates a powerful structural tailwind for these ASX healthcare stocks, if they can execute on the opportunity.

Here are two stocks that will give you exposure as Australia’s median age rises.  

Regis Healthcare Ltd (ASX: REG)

Regis offers perhaps the most straightforward exposure to this demographic shift. One of Australia’s largest healthcare providers, Regis delivers residential aged care, home care, day therapy, respite services, and retirement living to over 10,000 Australians.

Its share price hasn’t seen massive growth of late, up around 2% over the last twelve months, but if you zoom out, there’s more to the story. It is up over 200% in the last five years, reflecting sector recovery and improved operating conditions.

Its 1H26 reporting showcases its continued growth trajectory, with an 18% increase in service revenue, a 96% occupancy rate across its facilities, and a national expansion of 1,000 beds.

This growth is underpinned by a strong balance sheet and solid cash flows. And it seems to be positioning itself to realise the opportunity ahead, with ambitious plans for the coming years. It is targeting 10,000 quality beds by 2028, delivered through a mix of greenfield projects and acquisitions.

Of course, the aged care sector has seen its share of headwinds in recent times, and the regulatory environment will always present a risk.

The New Aged Care Act, which came into effect in July 2025, could change things for some incumbent residential care players. It’s designed to keep more Australians living independently for longer with support at home, and it will take time to see whether it has achieved this aim. But because Regis plays in both home care and residential facilities, I think it’s well placed to navigate any notable change in aged care trends. 

Is Regis Healthcare a buy right now?

For me, it’s an attractive option right now with a share price that doesn’t necessarily reflect its growth potential. If you’re looking for stocks that give you exposure to this significant demographic shift, Regis is hard to go past.

Ramsay Health Care Ltd (ASX: RHC)

Ramsay is more of a generalist healthcare provider, operating more than 70 private hospitals across the country. Of course, demand for hospital services grows with an ageing population. But the areas that interest me most in this demographic shift are Ramsay’s rehabilitation, allied care, and home-based care operations.

Its rehab at home program offers in-home support following hospitalisation for many common age-related conditions, including cardiac, joint replacements, and mobility/falls. Support includes allied health care, like physio and nursing, as well as at-home services such as meals and domestic help.

Currently, these programs only account for a small percentage of Ramsay’s revenue, but I think this is an area that could have real growth momentum as the population ages.  

A condition requiring hospitalisation is a common trigger point for families considering aged care options for a loved one. And Ramsay’s rehab, allied care, and at-home care services are well-positioned to help Australians stay independent at home for longer. By providing the hospital stay through to the rehab at home, Ramsay can service the market end-to-end.

Looking at its share price, Ramsay has seen a circa 22% uplift over the last 12 months. But the story is less positive if you zoom out, with a 33% decline over a 5-year period. This decline was likely driven by a number of factors, including squeezed margins, declining earnings per share, rising costs, and a slower-than-expected return to elective surgeries in the years following the COVID-19 pandemic.

Ramsay’s current share price reflects a challenging period for the healthcare provider, but I think it is on the pathway to a full recovery. It’s showing positive signs, with 1H26 reporting highlighting revenue growth of 9.3%, underlying EBITDA up 6.4%, and a 6.3% increase in the interim dividend to 42.5 cents per share.

Is Ramsay Healthcare a buy right now?

In my opinion, Ramsay is undervalued right now. As with Regis, regulatory risks remain. In addition, it is still working towards a full turnaround, but at the current share price, I believe there is attractive upside for investors if it can execute.

The post These ASX healthcare stocks are set to thrive as the population ages appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.