madamswer, you didn't mention that JHC already treats RADs as...

madamswer, you didn't mention that JHC already treats RADs as debt, whereas one or both of the other aged care firms don't. This issue was raised (probably by shorters) a few months ago, which caused all share prices to drop, but the writers either didn't look closely at JHC's balance sheet, or maybe JHC changed its accounting of RADs before the latest report.

I have difficulty imagining that most residents would suddenly pull out their RADs and switch to per diem or some other payment method. Also, while JHC uses RADs, it also uses bank debt. And if RADs decline in future (probably gradually, not suddenly), JHC will either use debt or more likely raise capital to fund growth. ASX companies commonly raise capital and if the investment is accretive, shareholders are happy to buy in.