Regional Health Properties (RHEP) completed the sale of its Coosa Valley Health and Rehab facility for $10.6 million. The buyer is an unaffiliated company. The company expects to record an approximately $3.7 million gain in the quarter ending December 31, 2025.
At closing, Regional repaid approximately $4.9 million of debt and received about $4.7 million in cash, after paying roughly $0.6 million of transaction expenses and depositing $0.4 million into escrow for unresolved tax liabilities tied to the facility. The company anticipates a portion of the escrow will be released back to it. Remaining proceeds will be used for general corporate and other purposes.
Regional Health Properties filed an 8-K/A to update its disclosure following the completion of its previously announced merger with SunLink Health Systems, effective August 14, 2025. The amendment solely supplements Item 9.01.
The company filed unaudited pro forma condensed combined financial information as Exhibit 99.1 for the six months ended June 30, 2025 and for the year ended December 31, 2024. Audited and interim SunLink financial statements were not refiled because substantially the same information was previously included in the company’s Form S-4. No shell company transactions were reported.