Regional Health Properties Announces Leadership Changes and Merger Plan with SunLink Health Systems.

Regional Health Properties has announced leadership changes, with Heather L. Pittard resigning as Chief Accounting Officer on February 15, 2025. Paul J. O'Sullivan will take over her responsibilities. The company also approved a merger with SunLink Health Systems, pending shareholder approval, and elected directors and ratified its independent registered public accounting firm during its annual meeting.

In a significant shakeup, Regional Health Properties, Inc. (RHE) announced on February 15, 2025, that Heather L. Pittard, the company's Chief Accounting Officer, had resigned from her position. Pittard's departure comes as RHE prepares to merge with SunLink Health Systems, Inc. (SSY) in an all-stock transaction [1]. Paul J. O'Sullivan will assume Pittard's responsibilities as the new Chief Accounting Officer.

This merger, which is subject to shareholder and regulatory approval, is expected to significantly enhance RHE's opportunity to increase shareholder value. With the addition of SunLink's complementary assets, RHE's balance sheet will be strengthened, and the combined company will be well-positioned for future growth [1].

RHE's Chairman and CEO, Brent S. Morrison, expressed his enthusiasm for the merger, stating, "This merger will create a combined company with a stronger balance sheet and greater scale. In addition, by combining SunLink's complementary pharmacy business with RHE's platform of healthcare facilities, the combined company will be well-positioned for future growth" [1].

SunLink's Chairman and CEO, Robert M. Thornton, Jr., also expressed his excitement about the merger, stating, "SunLink has been seeking a merger partner that would benefit from our complementary pharmacy business, cash and balance sheet that has no debt. We believe the combination of SunLink with RHE, whose assets consist of established skilled nursing and senior living facilities, offers the opportunity for increased value to both the SunLink and RHE shareholders" [1].

During RHE's annual meeting, the company also elected new directors and ratified its independent registered public accounting firm [2].

References:
[1] Regional Health Properties and SunLink Health Systems to Merge in an All-Stock Transaction. (2025, January 6). Retrieved February 16, 2025, from https://www.globenewswire.com/news-release/2025/01/06/3004488/0/en/REGIONAL-HEALTH-PROPERTIES-AND-SUNLINK-HEALTH-SYSTEMS-TO-MERGE-IN-AN-ALL-STOCK-TRANSACTION.html
[2] Regional Health Properties, Inc. (2025, February 15). Form 8-K. Retrieved February 16, 2025, from https://www.sec.gov/Archives/edgar/data/1471852/000147185225000094/form8k_20250215.htm