Aged care operator's shares dive on funding expectation

Regis Healthcare's analysis of government funding changes has resulted in a stock plunge. (Dave Hunt/AAP PHOTOS)

Shares in Regis Healthcare have plunged after the aged care operator said the government's latest funding package fell short of expectations.

Regis said on Monday its review found the government's funding package announced on September 12 won't sufficiently offset anticipated increases in staffing costs from a Fair Work Commission ruling and enterprise agreements.