Business Description

Description of Business In this Annual Report, except as the context suggests otherwise, the words “Regional Health” or “Regional” refer to Regional Health Properties, Inc., a Georgia corporation, and the words “Company,” “we,” “our,” and “us” refer to Regional Health and its subsidiaries. Regional Health Properties is a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services. Historically, the Company operated primarily as a healthcare real estate platform that leased skilled nursing and senior housing facilities to third-party operators under long-term triple-net lease arrangements. Over time, and particularly following recent strategic initiatives and acquisitions, Regional has evolved toward a more integrated healthcare operating model that combines healthcare real estate ownership with the direct operation of healthcare facilities and related healthcare services. In August 2025, Regional completed the merger with SunLink Health Systems, Inc. (“SunLink”), a Georgia corporation. SunLink merged with and into Regional Health, with Regional Health continuing as the surviving corporation (the “Merger”). The Merger expanded Regional’s operating platform and accelerated the Company’s transition toward a vertically integrated healthcare services model. As a result, Regional today participates more directly in the ownership, operation and improvement of healthcare facilities than it did historically, while still retaining a real estate segment that includes leased assets. Through its subsidiaries, Regional owns and operates skilled nursing and senior housing communities that provide a range of healthcare and residential services, including sub-acute and post-acute skilled nursing care, intermediate nursing care, rehabilitative therapy, memory care, Alzheimer’s and dementia care and senior living services. In addition to operating healthcare facilities, the Company owns healthcare real estate that is leased to third-party operators pursuant to triple-net lease arrangements. Regional believes its ability to operate facilities directly, while also owning and selectively leasing healthcare real estate, provides the Company with greater flexibility in capital allocation, operator selection and asset repositioning. As part of the SunLink merger, Regional also acquired a pharmacy business located in Crowley, Louisiana that provides retail pharmacy services, institutional pharmacy services and durable medical equipment. The pharmacy business expands Regional’s participation across the care continuum and provides the Company with additional operating capabilities that complement its healthcare facility operations, particularly in long-term care and senior services settings. Regional currently operates across six states, with the majority of its facilities located in the Southeastern United States. The Company believes this geographic footprint provides access to attractive demographic markets, including states with growing senior populations, favorable long-term demand trends for healthcare services and opportunities to acquire underperforming assets at valuations that may support attractive turnaround returns. Regional operates through three