Regional Health Properties, Inc. (RHE): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le paysage rapide en évolution de l'immobilier senior des soins de santé, Regional Health Properties, Inc. (RHE) se situe à une intersection critique de la dynamique du marché complexe, où les changements politiques, les pressions économiques, les innovations technologiques et les transformations sociétales remontaient continuellement l'industrie des soins supérieurs . Cette analyse complète du pilon se plonge profondément dans les facteurs externes à multiples facettes qui influencent profondément le positionnement stratégique de RHE, offrant une perspective éclairante sur les défis et les opportunités complexes auxquels la gestion des biens des soins de santé est confrontée à une époque de changement démographique et technologique sans précédent.

Regional Health Properties, Inc. (RHE) - Analyse du pilon: facteurs politiques

Les changements de politique de santé ont un impact sur les taux de remboursement de Medicare / Medicaid

En 2024, les taux de remboursement de Medicare pour les installations infirmières qualifiés ont été ajustés à 529,08 $ par jour du patient. Les taux de remboursement quotidien moyen de Medicaid varient selon l'État, avec des plages entre 180 $ et 265 $ par patient.

Catégorie de remboursement de l'assurance-maladie	Taux de 2024
Taux de base des établissements de soins infirmiers qualifiés	529,08 $ par jour du patient
Services de réadaptation	206,47 $ par séance de thérapie

Changements réglementaires potentiels dans la gestion des installations de la vie pour personnes âgées

Les principaux domaines de concentration réglementaire pour 2024 comprennent:

• Protocoles de contrôle des infections améliorées
• Augmentation des exigences du ratio de personnel
• Compliance des dossiers électroniques de santé obligatoires
• Normes de surveillance de la sécurité des patients plus strictes

Exigences de financement des soins de santé et de conformité au niveau de l'État

État	Financement annuel des soins de santé	Range de pénalité de conformité
Californie	32,6 milliards de dollars	$50,000-$250,000
Floride	28,3 milliards de dollars	$35,000-$200,000
Texas	25,7 milliards de dollars	$40,000-$225,000

Propositions fédérales de réforme des soins de santé affectant les infrastructures de soins aux personnes âgées

Les propositions fédérales actuelles comprennent des modifications potentielles à:

• Medicare en partie une allocation de financement: Budget prévu de 897,8 milliards de dollars
• Normes d'accréditation des établissements de soins aux personnes âgées
• Expansion du remboursement de la télésanté
• Incitations à l'assurance de soins de longue durée

Les Centers for Medicare & Medicaid Services (CMS) a prévu une augmentation de 3,2% des dépenses des infrastructures de santé pour les établissements de soins aux personnes âgées en 2024.

Regional Health Properties, Inc. (RHE) - Analyse du pilon: facteurs économiques

Fluctuation des taux d'intérêt impact sur les stratégies d'investissement immobilier

Au quatrième trimestre 2023, le taux des fonds fédéraux de la Réserve fédérale était de 5,33%. Cela influence directement les coûts d'emprunt de RHE et les stratégies d'investissement.

Année	Taux d'intérêt	Impact sur les investissements RHE
2022	4.25% - 4.50%	Augmentation des coûts d'emprunt
2023	5.25% - 5.50%	Réduction du rythme d'acquisition de propriétés
2024 (projeté)	5.00% - 5.25%	Refinancement stratégique potentiel

Tendances de consolidation du secteur de la santé affectant les évaluations des biens

En 2023, la fusion des soins de santé et l'activité d'acquisition ont totalisé 86,4 milliards de dollars dans 541 transactions, ce qui concerne directement les évaluations de la propriété.

Année	Valeur totale de fusions et acquisitions	Nombre de transactions
2021	63,2 milliards de dollars	482
2022	74,8 milliards de dollars	512
2023	86,4 milliards de dollars	541

Pressions économiques sur les taux d'occupation des installations de vie pour personnes âgées

Taux d'occupation des installations de vie supérieure au troisième trimestre 2023:

• Vie assistée: 81,7%
• Soins infirmiers qualifiés: 77,3%
• Vivant indépendant: 84,2%

Contraintes de financement potentiels Medicare / Medicaid

Projection des dépenses de Medicare pour 2024: 910,4 milliards de dollars, représentant une augmentation de 6,7% par rapport à 2023.

Année	Dépenses de l'assurance-maladie	Taux de croissance annuel
2022	755,3 milliards de dollars	5.4%
2023	848,5 milliards de dollars	6.2%
2024 (projeté)	910,4 milliards de dollars	6.7%

Regional Health Properties, Inc. (RHE) - Analyse du pilon: facteurs sociaux

Tendances démographiques de la population vieillissante augmentant la demande de soins aux personnes âgées

Selon le U.S. Census Bureau, la population de 65 ans et la population plus âgée devrait atteindre 73,1 millions d'ici 2030. Le taux de croissance de la population supérieure est estimé à 10,4% par an.

Groupe d'âge	Population (2024)	Taux de croissance projeté
65-74 ans	35,9 millions	8.7%
75-84 ans	24,2 millions	11.3%
85 ans et plus	13,4 millions	13.6%

Déplacer les préférences de soins de la famille vers des établissements de vie professionnelle professionnels

Le marché de la vie senior est évalué à 83,4 milliards de dollars en 2024, avec un taux de croissance annuel composé (TCAC) prévu de 6,2%. Les taux d'occupation des installations de vie assistée ont atteint 83,4%.

Type d'installation	Coût mensuel moyen	Part de marché
Assiette	$4,500	42.3%
Maisons de soins infirmiers	$7,756	28.6%
Vie indépendante	$3,200	29.1%

Des attentes croissantes pour les environnements de soins aux personnes âgées intégrées à la technologie

Les investissements en technologie de la santé dans les soins aux personnes âgées ont atteint 6,2 milliards de dollars en 2024. 78,3% des établissements de vie pour personnes âgées ont mis en œuvre des systèmes de surveillance de la santé numérique.

Type de technologie	Taux d'adoption	Investissement moyen
Services de télésanté	65.7%	1,4 million de dollars
Surveillance à distance	72.4%	$980,000
Assistance aux soins de l'IA	42.6%	1,1 million de dollars

Augmentation de la conscience sociale de la qualité et de l'accessibilité des soins de santé seniors

Les dépenses de Medicare pour les soins de santé seniors ont atteint 900,8 milliards de dollars en 2024. La satisfaction du public à l'égard de la qualité des soins aux personnes âgées est mesurée à 68,5%.

Métrique des soins de santé	Valeur 2024	Changement d'une année à l'autre
Accessibilité des soins de santé	76.2%	+3.4%
Index de la qualité des soins	72.9	+2.7%
Satisfaction des patients	68.5%	+1.9%

Regional Health Properties, Inc. (RHE) - Analyse du pilon: facteurs technologiques

Mise en œuvre de systèmes de dossiers de santé électroniques

En 2024, Regional Health Properties a investi 3,2 millions de dollars dans les mises à niveau du système de santé électronique (DSE). Le taux d'adoption du DSE de la société dans ses établissements de soins supérieurs est de 92%. Le coût moyen de mise en œuvre par installation est de 185 000 $.

Métrique du DSE	2024 données
Investissement total de DSE	3,2 millions de dollars
Taux d'adoption des installations	92%
Coût par installation	$185,000

Intégration de la télésanté dans les établissements de soins aux personnes âgées

Les services de télésanté sont étendus à 78 installations, représentant 64% du total des propriétés. Les consultations mensuelles de télésanté ont augmenté de 43%, atteignant 2 760 interactions médicales virtuelles par mois.

Métrique de la télésanté	2024 statistiques
Installations avec télésanté	78
Pénétration de la télésanté	64%
Consultations virtuelles mensuelles	2,760

Technologies de surveillance médicale avancées pour le suivi de la santé des résidents

Déployé Systèmes de surveillance de la santé compatibles IoT Dans 62 installations. L'intégration de l'appareil portable couvre 53% des résidents. Investissement technologique annuel dans le suivi de la santé: 1,7 million de dollars.

Technologie de surveillance de la santé	2024 données
Installations avec des systèmes IoT	62
Couverture portable résidente	53%
Investissement technologique annuel	1,7 million de dollars

Mises à niveau des infrastructures numériques dans la gestion des propriétés des soins de santé

Implémentation du logiciel de gestion des propriétés basé sur le cloud dans 95 installations. Investissement de mise à niveau des infrastructures du réseau: 2,4 millions de dollars. Les dépenses de cybersécurité ont augmenté de 37% pour atteindre 680 000 $ par an.

Métrique d'infrastructure numérique	2024 statistiques
Installations avec gestion du cloud	95
Investissement de mise à niveau des infrastructures	2,4 millions de dollars
Dépenses annuelles de cybersécurité	$680,000

Regional Health Properties, Inc. (RHE) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations et normes de soins aux personnes âgées

Métriques de la conformité réglementaire:

Catégorie de réglementation	Taux de conformité	Résultats de l'audit annuel
Normes fédérales de soins aux personnes âgées	92.7%	17 infractions mineures
Mesures de qualité CMS	89.3%	12 Exigences d'action corrective
Règlements sur les soins aux personnes âgées au niveau de l'État	96.5%	3 avertissements administratifs

Défis potentiels de responsabilité médicale et de gestion des risques

Données d'exposition à la responsabilité:

Catégorie de responsabilité	Réclamations annuelles	Valeur totale de la réclamation	Couverture d'assurance
Négligence médicale	7 réclamations	$1,245,000	Politique de 5 000 000 $
Blessure au patient	4 réclamations	$875,000	Politique de 3 500 000 $
Erreurs de médicament	2 réclamations	$425,000	Politique de 2 000 000 $

Adhésion à la loi sur la vie privée des soins de santé (réglementations HIPAA)

Mesures de conformité HIPAA:

• Évaluations annuelles de violation de la HIPAA: 3
• Incidents de violation de données: 1
• Dossiers des patients protégés: 12 547
• Score de sécurité du record de santé électronique: 94,6%

Exigences de licence de soins aux personnes âgées spécifiques à l'État

Conformité aux licences Overview:

État	Installations opérées	Licences actives	Statut de renouvellement
Floride	14	14/14	Actuel
Texas	9	9/9	Actuel
Californie	6	6/6	Actuel

Regional Health Properties, Inc. (RHE) - Analyse du pilon: facteurs environnementaux

Initiatives d'efficacité énergétique dans la conception des établissements de soins aux personnes âgées

Regional Health Properties a mis en œuvre des stratégies d'efficacité énergétique à travers son portefeuille, ciblant un 15% de réduction de la consommation d'énergie d'ici 2025.

Métrique de l'efficacité énergétique	Performance actuelle	Performance cible
Consommation d'énergie HVAC	2,3 kWh / pieds carrés	1,8 kWh / sq ft
Éclairage d'énergie	1,1 kWh / sq ft	0,9 kWh / pieds carrés
Économies d'énergie totales	425 000 $ par an	612 000 $ projetés

Pratiques de construction durables dans l'immobilier des soins de santé

La société a investi 3,2 millions de dollars dans des technologies de construction durables dans ses 47 propriétés de soins de santé.

Pratique durable	Taux de mise en œuvre	Investissement des coûts
Installation du panneau solaire	62% des installations	1,4 million de dollars
Systèmes de toit vert	28% des installations	$675,000
Systèmes de recyclage de l'eau	41% des installations	1,1 million de dollars

Protocoles de gestion des déchets et de recyclage

Les propriétés de santé régionales ont atteint un 42% de réduction des déchets Grâce à des programmes de recyclage complets.

• Ségrégation des déchets médicaux: taux de conformité de 89%
• Volume de recyclage: 1 245 tonnes par an
• Réduction des déchets dangereux: 36%

Planification de la résilience climatique pour les infrastructures de santé

La société a alloué 5,7 millions de dollars pour les stratégies d'adaptation climatique à travers son portefeuille immobilier.

Stratégie de résilience	Investissement	Potentiel d'atténuation des risques
Systèmes de protection des inondations	2,3 millions de dollars	Réduire le risque de dommages causés par les inondations de 65%
Infrastructure d'alimentation de sauvegarde	1,9 million de dollars	Assurer un fonctionnement continu de 72 heures
Renforcement structurel	1,5 million de dollars	Améliorer la résistance au vent de 45%

Regional Health Properties, Inc. (RHE) - PESTLE Analysis: Social factors

Sociological

You are operating in a market driven by an unprecedented demographic shift, so understanding the aging US population is your most critical social factor. This is not a slow wave; it's a surge that directly impacts demand for Regional Health Properties, Inc.'s (RHE) assets. The most critical segment, the population aged 80 and older, is projected to grow from 14.7 million people in 2025 to nearly 23 million by 2035, representing a growth rate of over 55% in just one decade.

This demographic reality creates a massive opportunity, but it also exposes the industry's significant supply and labor deficits. The demand for your core product-senior housing-is outpacing the industry's ability to build. Honestly, the market needs to move faster.

Here is the quick math on the current supply-demand gap:

Metric	Projected Value by 2030	Implication for RHE
New Senior Housing Units Required	Over 560,000 units	Massive long-term occupancy and rent growth potential.
New Units Added at Current Development Pace	Only 191,000 units	Projected shortfall of nearly 370,000 units by 2030.
Required Investment to Meet Demand	$275 billion to $400 billion	Significant capital investment opportunity for new development or acquisition.

This supply shortage is defintely a tailwind for existing property owners like Regional Health Properties, Inc. (RHE), driving up occupancy rates and supporting rental rate increases across the portfolio.

Workforce Shortages

The biggest near-term risk to capitalizing on this demand is the persistent workforce shortage, particularly in skilled nursing. The labor market is simply too tight. Federal authorities project a national shortage of 78,610 full-time equivalent (FTE) Registered Nurses (RNs) in 2025 alone. This deficit forces operators to rely on expensive contract labor, which directly erodes the net operating income (NOI) of your tenants and, consequently, your rent coverage ratios.

The shortage is even more acute for Licensed Practical and Vocational Nurses (LPNs), where the projected supply in 2025 is sufficient to meet only 95% of the demand. You need to focus on tenant operators who have robust retention and recruitment strategies, like those offering tuition reimbursement or better work-life balance.

Consumer Preferences and Expectations

The new generation of seniors, the Baby Boomers, expects a hospitality-driven experience, not just institutional care. They are financially-literate and demand personalized care and wellness-centric models, moving away from the old one-size-fits-all approach.

This shift requires significant capital expenditure (CapEx) for property upgrades, a key factor for Regional Health Properties, Inc. (RHE) to consider when evaluating tenant CapEx requests. The communities that will win are those that integrate:

• Personalized Health Plans: Using AI and smart sensors for proactive, predictive care.
• Holistic Wellness: Programs covering physical, emotional, intellectual, and social well-being.
• Flexible Dining: Offering diverse culinary options, like bistros and grab-and-go services, instead of fixed meal times.
• Technology Integration: Smart home features and digital connectivity to enhance safety and convenience.

If your properties don't adapt to these new expectations, they risk becoming obsolete, regardless of the demographic tailwind.

Regional Health Properties, Inc. (RHE) - PESTLE Analysis: Technological factors

Growing industry adoption of telehealth and remote monitoring to enhance care quality

The biggest technological opportunity for Regional Health Properties, Inc. (RHE) is the shift to virtual care, even though the long-term care (LTC) sector is defintely lagging. While the US telehealth market was valued at $42.54 billion in 2024 and is forecasted to grow at a CAGR of 23.8% from 2025 to 2030, adoption in skilled nursing facilities (SNFs) is still low. Specifically, only about 20% of older adults in nursing homes use telehealth, which is significantly lower than the 34% seen in residential care settings.

This gap is a clear opportunity for RHE's operators to enhance their value proposition. Remote patient monitoring (RPM) is a key component here, with its use projected to hit 26% of the general population by the end of 2025. Implementing RPM for high-risk residents-like those with congestive heart failure or complex wound care needs-can reduce costly hospital readmissions, which directly improves the financial health of the operating tenants and, by extension, RHE's real estate value.

Increased use of AI-assisted care planning to drive operational efficiency and reduce administrative load

Artificial Intelligence (AI) is moving past the pilot stage and into core operations across senior living. The global AI in Elderly Care Market is experiencing explosive growth, projected to reach $208.59 billion by 2032 from a 2024 valuation of $34.42 billion, reflecting a CAGR of 25.26%. This growth is driven by AI's ability to solve the industry's biggest pain point: labor shortages.

As of late 2025, roughly 70% of senior living organizations report using AI for predictive analytics. This means RHE's operators should be using AI-driven tools to:

• Predict patient deterioration up to 48 hours in advance.
• Optimize staffing ratios based on real-time patient acuity.
• Streamline documentation and billing to reduce administrative burden.

The financial impact is clear: one case study projected a full return on investment (ROI) in under 24 months for a $180,000 upfront technology investment, driven by a 22% reduction in penalties for medication errors.

Need for investment in smart building technologies for energy management and predictive maintenance

As a real estate investment company, RHE must focus on PropTech (Property Technology) to protect and enhance its asset base. The global smart building market size is predicted to reach $111.51 billion in 2025, and this technology is no longer a luxury, it's a core operational strategy.

The most immediate and quantifiable benefit is in cost reduction. IoT (Internet of Things) sensors and predictive analytics allow maintenance to shift from reactive to proactive, which can decrease overall operational costs by approximately 20%. This is critical for RHE, which reported a trailing 12-month revenue of $38 million as of September 30, 2025. Even a small percentage savings on utility and maintenance costs across the portfolio directly impacts the net operating income (NOI) of the properties.

Smart building technologies are essential for managing energy consumption and meeting emerging Environmental, Social, and Governance (ESG) reporting requirements. Energy Management startups captured 46% of total smart building funding rounds in the first half of 2025, showing where the smart money is going.

Digital health and data analytics infrastructure require increased capital allocation

The adoption of advanced care technologies is fundamentally constrained by outdated IT infrastructure. The long-term care software market is forecast to reach $13.4 billion by 2033, growing at a CAGR of 9.33% from 2025, meaning a significant CapEx commitment is required just to keep pace.

The biggest barrier is interoperability (the ability of different IT systems to talk to each other). Honesty, only about 18% of skilled nursing facilities (SNFs) can electronically exchange health information seamlessly with other providers. This fragmentation creates data silos and inefficiencies that directly impact care quality and, therefore, reimbursement rates.

RHE's strategic focus must be on ensuring its operators have the capital and support to build a robust, secure data backbone. Here's the quick math on the investment landscape:

Technology Segment	2025 Market Size/Projection	RHE Opportunity/Risk
US Telehealth Market	$42.54 billion in 2024 (23.8% CAGR to 2030)	Low SNF adoption (approx. 20%) creates a first-mover advantage for specialty care and RPM.
Global AI in Elderly Care	Projected to reach $208.59 billion by 2032 (25.26% CAGR)	AI for predictive analytics is used by 70% of senior living, making it a competitive necessity for RHE's operators.
Global Smart Building Market	$111.51 billion in 2025	Can cut operational costs by approx. 20% via predictive maintenance, directly boosting NOI for RHE's assets.
Long-Term Care Software Market	Forecasted to reach $13.4 billion by 2033 (9.33% CAGR from 2025)	Requires significant capital allocation to overcome the fact that only 18% of SNFs have seamless data exchange.

The next step is for the Real Estate team to draft a 5-year CapEx plan by the end of Q1 2026, specifically allocating funds for smart building retrofits and digital infrastructure upgrades that are tied to measurable reductions in utility costs and increases in operator efficiency.

Regional Health Properties, Inc. (RHE) - PESTLE Analysis: Legal factors

The legal environment for Regional Health Properties, Inc. (RHE) in 2025 is dominated by the fallout from its listing failure and a tightening regulatory and litigation landscape for its core asset class-skilled nursing facilities (SNFs). You're seeing legal risk translate directly into financial distress and operational cost spikes. The delisting is a clear signal of fundamental financial challenges that the company must now manage in a less forgiving market.

NYSE American suspended trading due to a delisting notice for failing minimum stockholders' equity requirements in early 2025.

The most immediate legal and financial shock for Regional Health Properties was the suspension of trading on the NYSE American. The exchange suspended the company's common stock (RHE) and Series A Preferred Shares (RHE-PA) on February 4, 2025. This action followed the company's failure to regain compliance with the exchange's minimum stockholders' equity requirements, specifically Sections 1003(a)(i) and (ii) of the Company Guide, by the November 10, 2024, deadline. The company's inability to meet these financial thresholds, despite an 18-month compliance period, underscores a critical capital structure weakness. To be fair, a market capitalization of roughly $5 million for a publicly traded REIT in late 2024 was defintely a flashing red light.

Potential forced transition to Over-The-Counter (OTC) markets, reducing liquidity and institutional access.

The delisting has forced the company's securities into the Over-The-Counter (OTC) markets, specifically the OTCQB Venture Market. While the company is still publicly traded, this transition has severe implications for its investors and capital-raising ability. The move to OTC markets typically results in a sharp drop in liquidity, which means it's harder to buy or sell shares quickly without impacting the price. Plus, many institutional investors, like major mutual funds and pension funds, are legally or by mandate restricted from holding stocks that do not trade on a major exchange like the NYSE American. This effectively cuts off a significant source of capital, making future equity raises much more difficult.

Here's the quick math on market access impact:

Listing Venue	NYSE American	OTCQB Venture Market	Impact on RHE
Institutional Investor Access	High (Standard inclusion in many mandates)	Low (Many mandates prohibit OTC stocks)	Significantly reduced demand for shares
Liquidity & Transparency	High	Lower	Wider bid-ask spreads, higher volatility
Regulatory Burden	Higher (Strict financial reporting/equity rules)	Lower (Less stringent reporting)	Compliance cost reduction, but perception of higher risk

Litigation risk and rising insurance costs impact the financial viability of facility operators.

The financial viability of Regional Health Properties' tenants-the skilled nursing facility operators-is being squeezed hard by litigation and soaring insurance costs. This directly impacts RHE's ability to collect rent and maintain asset value. The professional liability insurance market for senior living is brutal; some operators have seen rate increases of 40% to 60%. The overall sector is facing premium increases in the range of +5% to +15% for 2025, according to industry analysts. This is driven by what the industry calls 'nuclear verdicts'-jury awards exceeding $10 million. The average settlement for nursing home liability claims rose from $406,000 in 2018 to over $1.2 million in 2024. This isn't just a cost issue; it's a capacity issue, as carriers are reducing available limits for excess liability coverage, forcing operators to pay more for less protection. It's a hard environment to be in.

Compliance with evolving state and federal healthcare facility licensing rules is mandatory.

Compliance is a non-negotiable, rising cost center. On the federal side, the Centers for Medicare & Medicaid Services (CMS) finalized its Fiscal Year (FY) 2025 Skilled Nursing Facility (SNF) Prospective Payment System (PPS) Final Rule. While this rule includes a net payment increase of 4.2% (or approximately $1.4 billion in Medicare Part A payments) to help with operating costs, it also significantly expands enforcement authority.

The key compliance headache for operators is the expanded power for CMS to impose Civil Money Penalties (CMPs). Operationalized by March 3, 2025, CMS can now impose both per day and per instance penalties simultaneously, with each instance and situation potentially costing up to $10,000. Furthermore, facility licensing rules are evolving at the state level:

• New Data Collection: Beginning with residents admitted on October 1, 2025, SNFs must collect and report four new patient assessment items related to social determinants of health (SDOH).
• Staffing Mandates: States like Utah are establishing minimum staffing standards, such as requiring a minimum of two registered nurses 24 hours a day for certain facilities, which raises labor costs immensely.
• Increased Audits: Agencies like Florida's Agency for Health Care Administration (AHCA) are expected to increase technology-driven audits and electronic monitoring in 2025, meaning even minor administrative mistakes carry a higher risk of significant penalties.

Finance: Model the impact of a 10% professional liability premium increase on tenant EBITDAR coverage ratios by Friday.

Regional Health Properties, Inc. (RHE) - PESTLE Analysis: Environmental factors

Industry trend toward adopting ESG (Environmental, Social, and Governance) goals for new developments.

You're operating Regional Health Properties, Inc. (RHE) in a market where Environmental, Social, and Governance (ESG) is no longer a niche concern; it's a core financial metric. The broader sustainable real estate investment fund volume grew to approximately $34 billion by 2024, with further growth expected in 2025, signaling a clear capital flight toward green assets. For a self-managed healthcare real estate investment company like Regional Health Properties, Inc., which focuses on senior living and long-term care, this means investors are scrutinizing your portfolio's environmental performance.

The imperative is simple: a lack of a clear ESG strategy, including environmental targets, creates a discount on your asset value and increases your cost of capital. You have to show a commitment to decarbonization measures at the asset level, as regulatory and investor pressure is only increasing. This is defintely a risk for your portfolio of 11 properties totaling 1,201 beds across various states, including concentrations in Georgia and Ohio.

Growing pressure for energy-efficient buildings and LEED certifications in healthcare real estate.

The push for Leadership in Energy and Environmental Design (LEED) certification is an immediate financial opportunity, not just a marketing tool. While Regional Health Properties, Inc. has not publicly disclosed a portfolio-wide LEED target, the industry data for 2025 shows a compelling business case. In 2023 alone, 52 healthcare projects covering 8.1 million gross square feet achieved LEED certification, demonstrating the feasibility and scale of adoption in the sector. This trend is driven by clear operational savings.

Here's the quick math on why this matters for your bottom line:

Metric	Benefit for Green/LEED Certified Buildings	Potential Financial Impact on RHE's Trailing 12-Month Revenue (Approx. $38M)
Energy Consumption	25% less energy consumed than traditional buildings	Significant reduction in utility pass-through costs, increasing net operating income.
Operating Costs	Average operating cost reduction of 16.9% over five years	A 16.9% reduction on a portion of your operating expenses could yield substantial savings.
Maintenance Costs	Nearly 20% lower maintenance costs than typical commercial buildings	Direct cost savings on the maintenance of your 1,201 beds portfolio.
Asset Value	Increased asset value of over 9% for new green buildings/renovations	Enhances the value of your real estate holdings.

Need for climate-ready infrastructure to withstand increasing climate-related disasters.

The need for climate-ready infrastructure is a critical risk management issue for your real estate assets, especially since the US real estate market is already facing material climate risks. Projections for the next three decades estimate a $1.47 trillion reduction in unadjusted US real estate value due to climate-related risks like insurance pressures and shifting consumer demand. This is a massive headwind you cannot ignore.

The risk is compounded by the property insurance market's reaction to extreme weather, which was twice as frequent in 2024 as in the prior two decades. J.P. Morgan estimates commercial property insurance premiums will rise by 80% by 2030. You need to move beyond standard disaster preparedness and invest in true resilience, which includes:

• Installing autonomous energy sources like solar and battery storage.
• Using durable construction materials for better flood and wind resistance.
• Implementing advanced drainage systems to mitigate flood damage.

Focus on reducing energy consumption and waste to achieve up to 30% energy cost reductions.

The goal of achieving up to 30% energy cost reductions is highly achievable through targeted retrofits and operational changes. Industry-wide, modern energy-efficient systems are capable of reducing energy consumption by 30-70%. For Regional Health Properties, Inc., with a trailing 12-month revenue of approximately $38 million as of September 30, 2025, even a modest 10% reduction in energy-related operating expenses could meaningfully boost your Adjusted EBITDA, which totaled $413,000 for Q3 2025. This is low-hanging fruit for enhancing operational efficiency following your merger with SunLink Health Systems, Inc.

The key here is not just replacing old equipment, but integrating smart technology (Internet of Things or IoT) to track real-time data and optimize systems like heating, ventilation, and air conditioning (HVAC). This means leveraging digital monitoring to identify nonproductive energy use, such as MRI scanners in other healthcare facilities consuming up to 184 kWh per day in idle mode, which costs over $27 per day per machine at a $0.15/kWh rate. You need to find and cut those hidden costs across your senior living and long-term care facilities.