Amid the many inconveniences caused by COVID over the past two years, the little discussed frustration is the sheer cost that organisations have spent to minimise outbreaks. However, for aged care operator Regis Healthcare (ASX: REG), the bill for Omicron has come to $14 million which they hope to get back.

Given their stringent Government-imposed requirements, most of the expenses can be reclaimed from the Department of Health (DoH). For Regis and their susceptible aged care residents, Omicron has been a nightmare to manage since its first outbreak was announced in December 2021.

Imposing increased safety standards, new personal protective equipment purchases and accelerating COVID booster shots through their networks, Regis incurred $14 million in outbreak expenses in the four months to 30 April 2022.

This figure was up significantly from the $4.5m incurred in the 6 months to 31 December 2021, of which $3.3m was eligible for the Australian Government COVID-19 outbreak grant.

The Company has been advised that they expect to be fully reimbursed for COVID-19 related outbreak costs incurred but the $14m in outbreak expenses does not include preventative expenses which will be absorbed by Regis.

Absorbing those expenses have assisted Regis in maintaining their occupancy levels across their 64 aged care facilities that house more than 6,000 residents. For the 4 months ended 30 April 2022, occupancy was at 90.2% which was an increase on the 89.3% reported in December 2021.

For aged care operators like Regis, the pandemic and continuing outbreak of new strains has extended an already challenging period for the industry which has also been the subject of a Royal Commission.

Rising demand to meet demand from Australia’s rising population has been met with difficulties around staffing due to international travel restrictions and bad media publicity.

Notwithstanding these challenges, Regis has 7 new aged care facilities in development to be added to their network once the environment improves with all having been put on hold through the pandemic. Those 7 facilities would add 752 new beds once completed.

For the half year ended 31 December 2021, Regis reported a 3.1% increase in revenue to $364.2m and adjusted EBITDA of $44.1 million but with the lingering effects of COVID-19 and pending Government reimbursements, a statutory net loss after tax of $3.7m was logged.