The Morrison government should uncap daily payments that aged care providers charge to ensure a better market mechanism that would reduce the funding burden on the sector, industry experts say.

Share prices for the three major listed aged care operators – Estia Health, Regis Healthcare and Japara Healthcare – have risen 68 per cent, 125 per cent and 90 per cent respectively in the past six months as investors anticipate major reform and substantial new government funding that could be in excess of $10 billion.