Regional Health Properties Completes the Operations Transfer of Four Skilled Nursing Facilities and one Assisted Living Facility Located in Ohio
ATLANTA, Dec. 3, 2018 /PRNewswire/ -- Regional Health Properties, Inc. (NYSE American: RHE) (NYSE American: RHEpA), a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term care, today reported the successful transfer of operations on five of its facilities located in Ohio.
The Company completed, effective December 1, 2018, the operations transfer of four skilled nursing facilities and one assisted living facility located in Ohio pursuant to lease agreements signed with affiliates of MSTC Development, Inc. Management elected to transition the Ohio facilities to MSTC based on concerns of weak performance by the previous operator in addition to non-payment of rent. The new lease agreement was structured with lower rental rates initially but these rental payments will escalate based on facility occupancy. This structure enabled Regional Health Properties to attract a superior operator, and management expects MSTC will improve facility level operations significantly.
"Today we successfully transferred our five Ohio facilities to affiliates of MSTC," stated Brent Morrison, Regional's Interim Chief Executive Officer. "We are excited to welcome our new Ohio operating partner into our portfolio group and look forward to seeing great results from them in the future."