New Zealand aged care reform report lands: what it means for Ryman
Ryman Healthcare has welcomed the release of New Zealand’s independent Ministerial Advisory Group report on aged care funding and reform, published on 18 August 2026.
The detailed report sets out a range of recommendations covering the future funding and delivery of aged care services in New Zealand. Importantly, these are recommendations only. The Government is now considering its response and has not yet confirmed a policy position.
Ryman is New Zealand’s largest retirement living and aged care provider and is dual-listed on the NZX and ASX.
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What the report recommends
The report incorporates a number of design elements from Australia’s recently enacted aged care funding reforms. Its recommendations centre on five pillars:
Ryman’s FY26 financial turnaround delivered NZ$188.3 million in positive free cash flow, with Australian aged care beds generating $32.7k EBITDAF per bed following the enactment of funding reforms across the Tasman, providing a live reference point for what well-designed reform can do to operator economics.
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Near-term funding uplifts to support sustainability and stabilise the aged care sector.
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A split-funding model across care, daily living and accommodation costs, with the Government funding most clinical care costs and greater means testing of daily living and accommodation costs.
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Evidence-based pricing, supported by the establishment of an independent pricing authority.
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Differentiated funding settings, designed to incentivise the development of new aged care capacity for Government-subsidised residents.
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An integrated system with a national case-mix framework spanning residential aged care, in-home care, and broader health and social services.
The Government is now considering the recommendations and has not yet confirmed its policy response.
Why aged care funding reform matters
Near-term funding uplifts are intended to support sustainability and stabilise the aged care sector.
Two concepts sit at the centre of the proposed model. A split-funding model divides responsibility across different cost categories. Under the report’s recommendations, the Government would fund most clinical care costs, while residents would contribute more towards daily living and accommodation, with greater means testing applying to those costs.
The report recommends differentiated funding settings designed to incentivise the development of new aged care capacity for Government-subsidised residents. Nothing has been enacted at this stage, so any benefit remains conditional on the Government’s response.
Ryman’s position and CEO commentary
Ryman operates as a large-scale integrated provider across two markets. Its current scale illustrates its potential exposure to any reform outcome:
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47 integrated retirement villages across New Zealand and Australia
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Over 15,500 residents
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7,800 team members
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A fully integrated continuum of care spanning independent living, assisted living, and aged care within a single community
Chief Executive Officer Naomi James described the report’s release as an important milestone in the Government’s consideration of future aged care reform.
Naomi James, Chief Executive Officer
“As part of the wider health system, aged care providers play a crucial role in supporting hospital capacity, improving patient flow and ensuring older New Zealanders can access the right care, at the right time, in the right place. We look forward to Government’s response to this important work.”
What happens next
The Government is now considering the recommendations. No policy response has been confirmed and no timeline has been disclosed.
Ryman is positioned to engage with the outcome as it awaits the Government’s decision. The report incorporates a number of design elements from Australia’s recently enacted aged care funding reforms.
Ryman’s access to debt markets has remained active through this period, with the company launching a NZ$100 million retail bond offer in June 2026 at a minimum rate of 5.60% per annum, underpinned by the free cash flow improvement recorded in FY26.
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