Regional Health Properties, Inc. (RHE): Business Model Canvas [Dec-2025 Updated]

You're looking past the simple real estate plays to see how Regional Health Properties, Inc. (RHE) is actually making money now that they are pivoting hard into a vertically integrated healthcare model. Honestly, after two decades analyzing these structures, what stands out is the dual engine: they are not just collecting $\mathbf{\$2.8 \text{ million}}$ in rental income (for the six months ended June 30, 2025) but are also running 50% of their $\mathbf{11}$ senior care properties directly, contributing to their $\mathbf{\$17.2 \text{ million}}$ total revenue for that same period. This shift, cemented by recent moves like the $\mathbf{\$10.6 \text{ million}}$ asset sale in November 2025, changes the risk/reward profile entirely. Dive into the Business Model Canvas below to see exactly how their Key Activities and Revenue Streams are structured to support this complex, two-pronged strategy.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Key Partnerships

You're looking at how Regional Health Properties, Inc. (RHE) structures its external relationships to run its healthcare real estate investment business as of late 2025. These partnerships are critical because RHE relies heavily on others to operate the physical assets it owns or leases.

SunLink Health Systems, Inc. (post-merger integration)

The transformative merger with SunLink Health Systems, Inc., effective August 14, 2025, fundamentally changed RHE's partnership landscape by integrating SunLink's pharmacy and healthcare services onto RHE's real estate platform. This created a vertically integrated healthcare services company. For the third quarter ended September 30, 2025, RHE recognized a significant financial benefit from this integration, reporting a $5.3 million bargain purchase gain on the merger. The deal terms involved a specific exchange ratio for SunLink shareholders. At closing, each five shares of SunLink common stock converted into the right to receive (i) 1.1330 shares of Regional Health Properties, Inc. common stock and (ii) one share of Regional Series D 8% Cumulative Convertible Redeemable Participating Preferred Shares. This integration is key to achieving the expected growth and improved efficiency.

CJM Advisors for facility management contracts

RHE actively partners with CJM Advisors to manage certain facilities, especially those taken back from operators for stabilization. This relationship expanded in 2025. In the second quarter of 2025, RHE entered a management contract with CJM Advisors for its South Carolina facilities and the Southland facility in Georgia. This followed an earlier contract in late 2024 for the Glenville, GA facility. As of June 30, 2025, the portfolio data shows the reach of this partnership:

Affiliation Type	Partner	Number of Facilities	Beds / Units
Manager Affiliation	CJM Advisors	5	572

This arrangement helps RHE maximize asset performance where direct operation is deemed necessary for stabilization.

Third-party healthcare facility operators/tenants

The core of RHE's Real Estate Services segment involves leasing and subleasing properties to third-party operators who run the day-to-day healthcare services. These are typically structured as triple-net leases, meaning the tenant handles most operating expenses. As of June 30, 2025, RHE's portfolio breakdown by operator affiliation looked like this:

• Total owned/leased properties reported: 11 properties, totaling over 1,201 beds (including co-located properties).
• Facilities leased or subleased to tenants: 5 facilities, representing 513 beds/units.
• The company also has one leased facility that is subleased pursuant to a triple-net lease.

The ability to secure and maintain these tenant relationships is vital for generating predictable rental income streams, similar to a REIT structure. The portfolio census following the SunLink merger was reported as the highest since November 2022.

Lenders for facility debt financing at 5.0% weighted-average rate

Financing the real estate investments requires securing debt, and RHE maintains relationships with lenders to support its portfolio. The terms on the outstanding debt as of mid-2025 reflect the cost of this capital. As of June 30, 2025, RHE reported outstanding indebtedness with a specific weighted-average structure:

Metric	Value as of June 30, 2025
Weighted-Average Annual Interest Rate	5.0%
Weighted-Average Maturity	Approximately 16 years

For context, the weighted-average annual interest rate on indebtedness as of the end of 2024 was slightly higher at 5.1%. The company funds its real estate investments primarily through operational cash flow, mortgages, and equity sales.

Healthcare service providers for pharmacy and ancillary services

The partnership with SunLink Health Systems, Inc. directly addresses the need for integrated healthcare services, including pharmacy. SunLink brought its pharmacy and healthcare services platform into RHE. This move was intended to improve efficiency and create long-term value by combining the real estate platform with these essential operational components. While specific ongoing financial terms with external pharmacy providers aren't detailed for late 2025, the merger itself represents the most significant strategic partnership in this area, effectively internalizing a major service provider capability. Finance: draft 13-week cash view by Friday.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Key Activities

You're looking at how Regional Health Properties, Inc. actually makes money and manages its assets as of late 2025, especially after that big SunLink Health Systems, Inc. merger back in August. The core activities are a mix of being a landlord and being an operator, which is a deliberate shift.

Real estate investment and asset management remains central, though the mix is changing. As of June 30, 2025, Regional Health Properties, Inc. held investments of approximately $67.9 million across eleven health care real estate properties, plus one leased property. This portfolio was composed of nine skilled nursing facilities and two multi-service facilities. The company is a self-managed healthcare real estate investment company focusing on senior living and long-term care real estate.

The shift toward direct operation is a key activity, enhancing control. Following the merger, Regional Health Properties, Inc. is now vertically integrated, combining its real estate platform with services. The management commentary specifically noted that they operate 50% of their facilities, which helps with strategic alignment. This means about five or six of those eleven owned properties are now under direct management, moving them into the Healthcare Services segment.

Providing pharmacy and ancillary healthcare services became a much larger activity following the merger completion on August 14, 2025. This integration of SunLink's services is intended to drive growth and efficiency. The Healthcare Services segment is now where the majority of revenue is derived. For the nine months ended September 30, 2025, total revenue was $32.4 million, showing the scale of operations across both segments.

Strategic property acquisitions and dispositions is a constant balancing act. You saw this clearly with the recent sale. Regional Health Properties, Inc. completed the sale of the Coosa Valley Health and Rehab facility in Glencoe, Alabama, on November 10, 2025, for $10.6 million. This disposition activity resulted in approximately $4.7 million in cash received at closing, after repaying about $4.9 million in debt associated with the facility and covering transaction expenses. The company expects to report a gain on the sale of approximately $3.7 million in the quarter ending December 31, 2025. They plan to use these proceeds opportunistically to create shareholder value.

The final key activity involves the necessary, though less glamorous, work of managing regulatory compliance for skilled nursing facilities (SNFs). Since they own and operate SNFs, adherence to state and federal regulations for these facilities is a non-negotiable, ongoing operational requirement to maintain licenses and reimbursement streams. This is managed across the portfolio, which includes nine SNFs as of mid-2025.

Here's a quick look at the financial scale of the combined operations as of the latest reported quarter:

Metric	Period Ending September 30, 2025 (Q3)	Period Ending September 30, 2025 (Nine Months)
Reported Revenue	$15.1 million	$32.4 million
GAAP Net Income	$3.4 million	$671,000
Adjusted EBITDA	$413,000	$982,000
Earnings Per Share	$1.17	$0.14

The operational focus is clearly on driving performance in the managed facilities, as evidenced by the management noting the portfolio census was the highest since November 2022 following the merger.

• Recognized $5.3 million bargain purchase gain on the SunLink merger in Q3 2025.
• Repurchased 366,359 shares of the 12.5% Series B Cumulative Redeemable Preferred Shares subsequent to quarter-end.
• Authorized a repurchase plan for up to 500,000 shares of Series B Preferred Stock as of November 25, 2025.
• For the six months ended June 30, 2025, net cash provided by operating activities was $805k.

Finance: draft 13-week cash view by Friday.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Key Resources

You're looking at the core assets Regional Health Properties, Inc. (RHE) relies on to execute its strategy as a self-managed healthcare real estate investment company, especially after the SunLink Health Systems, Inc. merger. These aren't just line items; they are the tangible and intangible things RHE absolutely must have to make its model work.

The physical assets form the foundation. RHE's real estate portfolio is its primary investment vehicle, focused on senior living and long-term care properties. This portfolio size and composition are critical for generating lease and sub-lease revenue.

Resource Category	Metric	Value as of Late 2025 Data
Real Estate Portfolio Size	Number of Properties Owned	11
Real Estate Portfolio Size	Total Beds	1,201
Balance Sheet Strength	Net Indebtedness (as of June 30, 2025)	$49.9 million

Liquidity management is always key, especially when executing major transactions like the recent merger and subsequent asset sales. You saw the news about the Coosa Valley facility sale in November 2025; that generated immediate cash flow to deploy.

Specifically, following the sale of the Coosa Valley Health and Rehab facility, $4.7 million in cash proceeds was received at closing in November 2025, after accounting for transaction expenses and escrow deposits. This new cash position is a resource to be used opportunistically for shareholder value creation.

The management team's specific knowledge base is a non-physical, but vital, resource. Following the merger, Regional Health Properties, Inc. became a vertically integrated healthcare services company, which requires a blend of expertise.

• Real estate investment and leasing expertise.
• Operational expertise in healthcare services, bolstered by the SunLink merger.
• Leadership, such as Brent Morrison, serving as President, Chief Executive Officer, and Chairman.

Operating the healthcare segment requires the proper legal standing. These are the necessary permissions to operate the skilled nursing and senior living facilities, which underpin the Healthcare Services segment revenues.

The licenses and certifications cover the range of services provided across the facilities, which include:

• Skilled nursing services: daily nursing, therapeutic rehabilitation, social services, housekeeping, nutrition, and medication management.
• Independent living community services.
• Assisted living facility operations.

Finally, the capacity to take on or manage debt is a resource for growth or stability. As of June 30, 2025, the balance sheet reflected $49.9 million in net indebtedness. This figure, along with operational cash flow and potential equity issuance, defines the long-term debt capacity available for future investments or capital allocation programs, such as the Series B Preferred Stock repurchase program announced in late November 2025.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers, partners, and the market value Regional Health Properties, Inc. right now, especially after the SunLink Health Systems, Inc. merger finalized around July/August 2025. This isn't just about owning buildings anymore; it's about controlling the service delivery, too.

Vertically integrated real estate and healthcare services (post-merger)

The merger created a dual structure. Regional Health Properties, Inc. now operates with two reportable segments: the real estate segment and the healthcare services segment. Honestly, the majority of the revenue now flows from that healthcare services segment, which is a big shift from a pure holding company model. For the three months ended March 31, 2025, total revenues hit $7.2 million, a jump of 74.2% year-over-year, largely because patient care revenues from the Healthcare Services segment increased by 144.3%. This integration means direct operational control over facilities like Meadowood.

Stable, recurring rental income from triple-net leases

A key value is the predictable cash flow from the real estate side. As of June 30, 2025, the portfolio included 11 properties, with seven facilities held under triple-net leases and one leased facility that is subleased under a triple-net lease structure. This structure typically shifts most operating expenses to the tenant. Despite the shift toward operations, the trailing 12-month revenue as of September 30, 2025, was $38M. As of March 31, 2025, Regional Health Properties, Inc. was in compliance with its debt covenants, with $49.2 million in outstanding indebtedness.

Direct operational control for enhanced quality and efficiency

This value proposition comes directly from the post-merger structure, allowing Regional Health Properties, Inc. to manage operations directly in certain facilities. This control is applied across the portfolio, which as of June 30, 2025, totaled 11 properties, including nine skilled nursing facilities (SNFs) and two multi-service facilities, amounting to over 1,201 beds. The company's total investment in these healthcare real estate properties was approximately $67.9 million as of that same date.

Specialized memory care units

Regional Health Properties, Inc. offers specialized care offerings within its multi-service campuses. For example, Meadowood Retirement Village is specifically noted as a multi-service campus offering assisted living, memory care, and independent living services. The company manages facilities under various operator affiliations, including C.R. Management (2 facilities, 233 beds/units) and Aspire Regional Partners (3 facilities, 280 beds/units) under direct lease/sublease arrangements as of June 30, 2025.

Geographic diversification across states like Georgia and Ohio

The property portfolio is spread across different states, which helps mitigate localized market risks. The company has concentrations in Georgia and Ohio. Specific investment figures noted in a June 30, 2025 filing show property-related values associated with these states:

State	Reported Value (in USD)
Georgia	$7,285,682
Ohio	$4,059,240
South Carolina	$9,797,062

The total reported investment value across the listed states in that specific table was $51,960,700.

Here's a quick look at the segment revenue contribution for the first quarter of 2025:

• Total Revenues: $7.2 million
• Patient Care Revenues (Healthcare Services Segment): Increased by 144.3%
• Rental Revenues (Real Estate Segment): Decreased by 14.9% for the quarter

Finance: review the Q3 2025 Adjusted EBITDA trend against the Q1 2025 figure of $428,000 by Wednesday.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Customer Relationships

Dedicated account management for third-party tenants

Regional Health Properties, Inc. focuses on leasing and subleasing facilities to external operators, which requires dedicated oversight for these third-party tenants. As of June 30, 2025, the portfolio included 5 facilities leased or subleased to separate tenants affiliated with named operators. Seven of the owned properties are held under triple-net leases, which shifts many operational responsibilities to the tenant but necessitates strong contractual relationship management. One specific example of a long-term relationship is the Vero Health Lease for the Mountain Trace Facility, structured as a triple net lease with an initial term of 10 years, with rent stated at approximately $0.5 million.

Direct patient care and service delivery in operated facilities

The Healthcare Services segment involves direct customer interaction through facilities operated by Regional Health Properties, Inc. As of June 30, 2025, 6 facilities were operated under third-party management agreements, representing 662 beds/units across those managed properties. The overall portfolio occupancy rate, reflecting the direct service delivery environment, stood at 66.2% as of June 30, 2025. The patient care revenues for the Healthcare Services segment for the six months ended June 30, 2025, were $14.4 million.

Manager Affiliation	Number of Facilities (as of 6/30/2025)	Beds / Units (as of 6/30/2025)
CJM Advisors	5	572
Cavalier Senior Living	1	90
Total Managed	6	662

Investor relations for preferred and common stockholders

Communication with stockholders is a key relationship focus for Regional Health Properties, Inc., which trades on the NYSE American under the symbol RHEP. The company seeks to enhance shareholder value through responsible communication practices. As of November 13, 2025, the market capitalization was $5.49M, based on 3.92 million shares outstanding, with a stock price of $1.43. The trailing 12-month revenue as of September 30, 2025, was $38 million. The relationship with preferred stockholders involves specific contractual obligations, such as the January 30, 2025 announcement of a dividend of 250,000 shares of Common Stock to holders of the 12.5% Series B Cumulative Redeemable Preferred Shares.

• Stock Price (as of 11/13/2025): $1.43
• Market Cap (as of 11/13/2025): $5.49M
• Shares Outstanding (as of 11/13/2025): 3.92M
• Series B Preferred Stock Dividend Declared (Jan 2025): 250,000 Common Shares

Long-term lease agreements with operators

The Real Estate segment relationship structure is built on long-term lease agreements, similar to a REIT structure, designed to generate predictable, recurring rental payments. As of June 30, 2025, Regional Health Properties, Inc. owned 11 properties, with 7 of these held pursuant to triple-net leases. The total investment in these eleven health care real estate properties was approximately $67.9 million as of that date. The company has 69 recorded Lease Agreements in its public filings.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Channels

You're looking at how Regional Health Properties, Inc. gets its services and value propositions to its customers and stakeholders. It's a mix of direct operation, real estate transactions, and formal corporate communication. Honestly, the shift toward direct operation is a big deal for their channel strategy.

Direct facility operations (Healthcare Services segment)

Regional Health Properties, Inc. uses direct operation as a primary channel, especially after transitioning several facilities into this segment. As of the second quarter of 2025, the company stated they directly operate 50% of their facilities, which enhances control and alignment with their goals. This direct channel generated significant patient care revenues.

For the three months ended June 30, 2025, patient care revenues for the Healthcare Services segment hit $8.8 million, a substantial increase from $2.5 million for the same period in 2024. For the six months ended June 30, 2025, these revenues totaled $14.416 million.

The total revenue for the three months ended June 30, 2025, across both segments was $10.057 million.

Real estate leasing and sub-leasing transactions

The traditional channel for Regional Health Properties, Inc. remains real estate leasing and sub-leasing, which aligns with its roots as a healthcare real estate investment company. This channel involves leasing properties to third-party tenants who then operate the facilities. This strategy is designed to generate predictable rental income, similar to a REIT model, often using triple-net leases.

Rental revenue for the Real Estate segment showed a decrease for the first six months of 2025, coming in at $2.831 million compared to $3.617 million for the same period in 2024. For the three months ended June 30, 2025, rental revenue was $1.283 million, down from $1.8 million in the prior year's quarter. This decrease is tied to the transition of some facilities to the direct Healthcare Services segment.

As of June 30, 2025, the portfolio structure supporting these transactions included investments of approximately $67.9 million in twelve properties (eleven owned, one leased). Seven of these owned facilities operate pursuant to triple-net leases.

Here's a breakdown of the portfolio structure as of June 30, 2025, based on the real estate investments:

Property Type	Number of Facilities	Total Investment (in thousands USD)
Skilled Nursing Facilities (Owned)	9	51,960.700
Multi-Service Facilities (Owned)	2	15,938.776
Total Owned Properties	11	67,899.476
Leased Property (Subleased via triple-net lease)	1	Not Separately Itemized in Total Investment

Also, note that on November 10, 2025, Regional Health Properties, Inc. completed the sale of the Coosa Valley Health and Rehab facility for $10.6 million, expecting a gain of approximately $3.7 million in the quarter ending December 31, 2025.

Investor communication via SEC filings and press releases

Investor communication is a formal channel relying heavily on regulatory disclosures. Regional Health Properties, Inc. utilizes standard SEC filings to keep the market informed. Key documents include the comprehensive annual 10-K Report and the abbreviated quarterly 10-Q Report, which was filed for the period ending June 30, 2025. Special events, like the November 10, 2025, sale announcement, are communicated via an 8-K Report.

The company trades on the OTCQB under symbols such as RHEP. As of August 12, 2025, the registrant had 2,242,239 shares of common stock outstanding. As of November 13, 2025, the stock price was $1.43.

The company seeks to enhance shareholder value through responsible communication, which includes:

• Stock price and history data availability.
• Upcoming events and presentations updates.
• Distribution of financial documents.

Management contracts with external operators

For facilities not directly operated, Regional Health Properties, Inc. uses management contracts as a channel to ensure asset performance. As of June 30, 2025, six facilities were operated under third-party management agreements with two external managers.

The company recently entered a new management contract with CJM Advisors to manage its South Carolina facilities and the Southland facility in Georgia. CJM Advisors manages 5 facilities totaling 572 beds/units.

The portfolio breakdown by operator affiliation as of June 30, 2025, shows:

Operator Affiliation	Number of Facilities	Beds / Units
C.R. Management	2	233
Aspire Regional Partners	3	280
Subtotal (Managed by Affiliates)	5	513
Cavalier Senior Living	1	90
CJM Advisors	5	572
Subtotal (Managed by Third-Party)	6	662
Total Managed Facilities	11	1,175

Past management agreements, such as the Vero Management Agreement for the Tara Facility, stipulated a monthly management fee equal to 5% of the Adjusted Gross Revenues, with the Company absorbing all net profits or losses from that facility's operation. The Peach Management Agreement involved a 4% fee plus additional percentages for meeting specific performance targets. This shows a clear structure for compensating external operators through the channel.

Finance: draft 13-week cash view by Friday.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Customer Segments

Third-party healthcare facility operators (Real Estate segment)

Regional Health Properties, Inc. invests primarily in real estate purposed for senior living and long-term healthcare through facility lease and sub-lease transactions.

• Facilities pursuant to triple-net leases: 7
• Facilities managed by external managers: 6, managed by 2 external managers
• Facilities managed on behalf of third-party owners: 3

The Real Estate Services segment includes leasing and subleasing facilities to third-party tenants.

Senior living and long-term care residents

The portfolio includes properties that provide senior living and long-term care services.

Portfolio Component	Count as of June 30, 2025
Total Health Care Real Estate Properties Owned/Leased	11 properties and 1 leased property
Skilled Nursing Facilities (SNFs) Owned	9
Multi-Service Facilities Owned	2
Total Licensed Beds/Units (Approximate)	Over 1,201
Average Occupancy Rate (June 2025)	66.8%

Patients requiring skilled nursing and rehabilitation services

The facilities provide a range of healthcare and related services for both long-term and short-stay patients.

• Patient care revenues increased 144.3% for the three months ended March 31, 2025, driven by the Healthcare Services segment.
• Patient care expense for the six months ended June 30, 2025: $11.6 million

Institutional and individual investors (common and preferred stock)

Regional Health Properties, Inc. seeks to enhance shareholder value through performance and communication.

Metric	Value as of Late 2025
Market Capitalization	$5.21 Million (as of Dec 4, 2025 close)
Shares Outstanding (Common Stock)	1.88 Million (as of Dec 4, 2025)
Stock Ticker	OTCQB: RHEP
Domestic Funds Holding (Schemes)	3 Schemes
Percentage Held by Domestic Funds	1.29%
Foreign Institutions Holding	0

The company has Regional Series D 8% Cumulative Convertible Redeemable Participating Preferred Shares.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Cost Structure

You're looking at the core outflows for Regional Health Properties, Inc. (RHE) as they operate and manage their healthcare real estate platform, especially after the recent vertical integration moves. The cost structure is heavily influenced by the direct costs of operating the facilities they took back into their Healthcare Services segment.

The primary cost drivers for Regional Health Properties, Inc. (RHE) for the six months ended June 30, 2025, are detailed below. These figures reflect the impact of transitioning facilities like Mountain Trace, Georgetown, Southland, and Sumter to direct operation within the Healthcare Services segment, which significantly increased direct operating costs compared to prior periods. It's defintely a shift from a pure triple-net lease model.

Key Expense Components (Six Months Ended June 30, 2025):

• High patient care expense: This was reported at $11.6 million for the six months ended June 30, 2025. This represents a substantial increase, primarily due to taking on the direct operation of several facilities.
• General and administrative expenses: These expenses totaled $4.7 million for the same six-month period in 2025. This increase, up 74.1% from the prior year period, is also linked to the transition of those four facilities to the Healthcare Services segment.
• Facility rent expense: This cost was $0.4 million for the six months ended June 30, 2025.
• Interest expense on outstanding debt: As of June 30, 2025, Regional Health Properties, Inc. had outstanding indebtedness of $49.9 million with a weighted-average annual interest rate of 5.0%. Based on this, the estimated interest expense for the six-month period would be approximately $1.2475 million ($49.9 million 5.0% 6/12).
• Property taxes, insurance, and maintenance costs: While not explicitly itemized with a total for the six months ended June 30, 2025, these are inherent operating costs associated with owning and managing real estate assets, and the rising insurance costs are noted as a general risk factor for the business.

Here's a quick look at the major reported expenses for the six months ended June 30, 2025, in thousands:

Cost Category	Amount (in thousands)	Period
Patient Care Expense	11,600	Six Months Ended June 30, 2025
General and Administrative Expenses	4,700	Six Months Ended June 30, 2025
Facility Rent Expense	400	Six Months Ended June 30, 2025
Estimated Interest Expense (Calculated)	1,248	Six Months Ended June 30, 2025

The cost structure shows a heavy reliance on direct operating expenses now that Regional Health Properties, Inc. is directly operating 50% of its facilities. This contrasts with the historical focus on rental revenues from triple-net leases. The debt level of $49.9 million as of June 30, 2025, means that interest payments remain a fixed, non-trivial component of the ongoing costs.

Finance: draft 13-week cash view by Friday.

Regional Health Properties, Inc. (RHE) - Canvas Business Model: Revenue Streams

You're looking at how Regional Health Properties, Inc. brings in its money as of late 2025. The business model clearly leans heavily on direct patient services following strategic shifts. For the six months ended June 30, 2025, the company reported total revenue of $17.2 million.

The largest component of this revenue comes from patient care revenues, which is now the core focus of the Healthcare Services segment. This segment generated $14.4 million for the six months ended June 30, 2025. That's a massive 198.3% increase compared to the $4.8 million generated in the same six-month period of 2024, driven by the transition of several facilities into this operating segment. To be fair, this shift means the Real Estate Services segment's rental income has decreased.

Rental revenues from facility leases, which fall under the Real Estate Services segment, amounted to $2.8 million for the six months ended June 30, 2025. This figure represents a 21.7% decrease from the $3.6 million reported for the first six months of 2024. Also note that facility rent expense for the same six-month period was $0.4 million.

Here's a quick look at the revenue breakdown for the first half of 2025:

Revenue Source	Amount (Six Months Ended June 30, 2025)
Patient Care Revenues (Healthcare Services Segment)	$14.4 million
Rental Revenues (Real Estate Services Segment)	$2.8 million
Total Reported Revenue	$17.2 million

The company also generated $10.1 million in total revenue for the second quarter ended June 30, 2025, alone. The merger with SunLink Health Systems subsequent to the quarter-end is intended to integrate pharmacy and healthcare services, suggesting future revenue streams will incorporate these ancillary services more directly, though specific fee revenue for the six-month period isn't broken out separately in the summary data.

A significant, non-recurring revenue event occurred in late 2025. Regional Health Properties, Inc. completed the sale of the Coosa Valley Health and Rehab facility in November 2025 for $10.6 million. This strategic asset sale involved several cash movements at closing:

• Proceeds from strategic asset sales: $10.6 million
• Debt repaid at closing: Approximately $4.9 million
• Cash received at closing: Approximately $4.7 million
• Transaction expenses and escrow deposits: $0.6 million and $0.4 million, respectively

The company expects to report a gain on the sale of approximately $3.7 million in the results for the quarter ending December 31, 2025. You should track how the company deploys the net cash proceeds received from this transaction.

Key financial metrics tied to these revenue streams for the first half of 2025 include:

• Total Reported Revenue (Six Months Ended June 30, 2025): $17.2 million
• Adjusted EBITDA (Six Months Ended June 30, 2025): $964k
• Net cash provided by operating activities (Six Months Ended June 30, 2025): $805k

Finance: draft 13-week cash view by Friday.