Regional Health Properties, Inc. (RHE): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at Regional Health Properties, Inc. right now, and honestly, the SunLink merger has completely reshaped the board, making a simple analysis tough. We need to see past the noise of investor relations-which is currently hyping that 100% Q3 lease collection-to the real drivers: a business now split between real estate income and healthcare services revenue, which hit $15.1 million in Q3 2025 alone. With occupancy hitting a high of 66.8% back in June, the core question is whether this vertically integrated model, spanning skilled nursing and new pharmacy services, can scale that $32.4 million nine-month revenue base effectively. It's a pivot, plain and simple. Dig into the 4 Ps below to see exactly where they are placing their bets.

Regional Health Properties, Inc. (RHE) - Marketing Mix: Product

The product offering of Regional Health Properties, Inc. (RHE) centers on a vertically integrated model combining healthcare real estate investment with direct healthcare operations. This structure was significantly enhanced by the transformative merger with SunLink Health Systems, Inc., which was completed on August 14, 2025. This merger integrated SunLink's pharmacy and healthcare services directly into the existing real estate platform. For the six months ended June 30, 2025, Regional Health Properties, Inc. (RHE) reported total revenue of $17.2 million. The business is structured around two reportable segments: the Real Estate Services segment and the Healthcare Services segment, with the majority of revenue derived from the latter.

Operational control over the product delivery is a key feature; as of the second quarter of 2025, the company stated it now directly operates 50% of its facilities, a move intended to enhance control and strategic alignment. The core real estate assets are purposed for senior living and long-term healthcare, often structured under long-term, triple-net leases, similar to a REIT model. The company's portfolio is diversified, with concentrations noted in Georgia and Ohio.

The physical product portfolio, as detailed in the filing for the quarter ended June 30, 2025, consists of both skilled nursing facilities and multi-service campuses. The company had investments of approximately $67.9 million in eleven health care real estate properties and one leased property at that time.

The total operational footprint, as of early December 2025, was reported to be approximately 25 facilities primarily in the Southeast, broken down into 13 owned, nine leased, and three managed for third parties. Separately, the portfolio was reported to total 1,201 beds across senior care properties and skilled nursing facilities.

The services component of the product offering is comprehensive, covering various levels of care. The facilities provide a range of healthcare and related services to patients and residents.

• Skilled nursing services
• Assisted living services
• Memory care services
• Independent living services
• Various therapy services
• Social services

For the second quarter of 2025, the reported total revenue was $10.1 million, with an Adjusted EBITDA of $456k.

Regional Health Properties, Inc. (RHE) - Marketing Mix: Place

You're looking at how Regional Health Properties, Inc. physically positions its real estate assets to generate revenue. For Regional Health Properties, Inc., Place isn't about stocking shelves; it's about the strategic location and structure of the physical healthcare properties themselves, which are the core 'product' in their real estate investment model.

The distribution strategy for Regional Health Properties, Inc. centers on owning and leasing/subleasing healthcare facilities, primarily for senior living and long-term care, to third-party operators. This model is structured similarly to a Real Estate Investment Trust (REIT), relying on long-term, triple-net leases to secure predictable rental income streams. The company currently operates through two reportable segments: the real estate segment and the healthcare services segment, deriving the majority of its revenue from the latter, which is supported by the physical placement of its assets. As of September 30, 2025, Regional Health Properties, Inc. reported trailing 12-month revenue of approximately $38 million.

The geographic deployment of these assets is intentionally focused to manage regional market dynamics. You see this concentration in specific states, which is a key factor in their distribution strategy.

• Properties show concentrations in regional US markets, specifically Georgia and Ohio.
• The portfolio is diversified across various states.
• As of December 31, 2021, the portfolio comprised 24 facilities owned, leased, or managed for third parties.
• The business model relies on leasing/subleasing facilities to third-party tenants who then provide the actual healthcare services.

The corporate nerve center for managing this geographically dispersed portfolio is firmly planted in Atlanta, Georgia. This is where the strategic decisions about asset placement, acquisition, and recycling are made.

• Corporate headquarters address: 1050 Crown Pointe Parkway, Suite #720, Atlanta, GA 30338.
• The company's main contact phone number is (678) 869-5116.

A critical component of the Place strategy is strategic asset recycling-selectively selling properties to optimize the portfolio and generate capital for other uses. A very recent example of this in action occurred in late 2025.

Here's the quick math on the November 2025 divestiture:

Regional Health Properties, Inc. intends to use the net proceeds received at closing for general corporate and other purposes, which is the intended outcome of this asset recycling effort. If onboarding takes 14+ days, churn risk rises, and for an asset-heavy business like this, the quality of the tenant placement is defintely paramount to the success of the lease structure.

Regional Health Properties, Inc. (RHE) - Marketing Mix: Promotion

You're looking at how Regional Health Properties, Inc. communicates its value proposition to the market, which, for a company like Regional Health Properties, Inc., is heavily weighted toward the investment community. The primary focus for promotion is definitely investor relations, driven by financial press releases disseminated through channels like GlobeNewswire and reported on by OTC Markets.

The narrative Regional Health Properties, Inc. pushes centers on the transformative growth achieved through the SunLink Health Systems, Inc. merger, which officially closed on August 14, 2025. This strategic move is communicated as creating a vertically integrated healthcare services company poised for growth. The success of this integration is quantified by the $5.3 million bargain purchase gain recognized in the Third Quarter 2025 results.

You see Regional Health Properties, Inc. publicly traded on the OTCQB Venture Market under the ticker RHEP for its common stock, though preferred shares trade under other symbols like RHEPA, RHEPB, and RHEPZ. The company profile data was verified by the issuer within the previous 6 months as of July 2025.

Investor communication, especially following the Q3 2025 earnings release on November 20, 2025, strongly emphasized operational success. Management specifically highlighted collecting 100% of their lease rent for the third quarter ended September 30, 2025. That kind of collection rate is a powerful message to send to current and prospective shareholders. Here's a quick look at some of the key figures from recent investor-facing announcements:

Also, in a clear signal of capital deployment strategy, Regional Health Properties, Inc. announced a Series B Preferred Stock Repurchase Program on December 1st, 2025. This program authorizes the company to buy back up to 500,000 shares of its 12.5% Series B Cumulative Redeemable Preferred Shares using cash on hand. To be fair, they had already repurchased 366,359 shares of that same Series B stock during the third quarter. This ongoing activity is a key part of the investor communication strategy, showing proactive management of the capital structure.

The promotion efforts boil down to a few core messages you should track:

• Investor relations via financial press releases are the main channel.
• Highlighting the SunLink merger as transformative.
• Stressing the 100% Q3 2025 lease collection metric.
• Announcing the new buyback for up to 500,000 Series B shares.
• Trading publicly on the OTCQB under ticker RHEP.

Finance: draft a comparison slide showing the pre-merger revenue of $20.69 million (six months ended June 30, 2025) against the post-merger Q3 2025 revenue of $15.1 million by next Tuesday.

Regional Health Properties, Inc. (RHE) - Marketing Mix: Price

Regional Health Properties, Inc. (RHE) derives its revenue majority from the Healthcare Services segment, reflecting a pricing structure heavily influenced by service delivery rather than pure real estate leasing for that portion of the business. The revenue model is a mix of patient care fees and facility rental income.

For the nine-month period ended September 30, 2025, reported revenue reached $32.4 million. The third quarter of 2025 specifically reported total revenue of $15.1 million.

The pricing environment for the services segment shows demand strength, as the June 2025 average occupancy rate was reported at 66.8%, noted as a multi-year high.

The pricing realization within the Healthcare Services segment is heavily weighted toward government payors. The vast majority, stated as greater than 90%, of the revenue recognized in this segment comes from federal (Medicare) and state (Medicaid) government sources.

The financial structure supporting these operations involves specific capital costs and shareholder actions that impact the overall financial picture related to price:

• Outstanding indebtedness as of September 30, 2025, stood at $48.6 million.
• This debt carried a weighted-average annual interest rate of 5.0%.
• The weighted-average maturity for this indebtedness was approximately 16 years.
• Regional Health Properties, Inc. repurchased 366,359 shares of the Company's 12.5% Series B Cumulative Redeemable Preferred Shares at a discount to liquidation preference.

Here are the key financial metrics related to revenue generation for the period:

The company recognized a bargain purchase gain of $5.3 million on the merger of SunLink Health Systems, Inc. during the third quarter of 2025.