Regional Health Properties, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing mixed performance in revenue and profitability compared to the previous fiscal period. Total revenues for the three months increased to $4.2 million, up from $4.1 million in the same period of 2023, driven primarily by a 21% rise in patient care revenues, which reached $2.6 million. For the nine months, total revenues slightly increased to $12.7 million from $12.6 million, with patient care revenues also rising to $7.4 million, a 12.8% increase year-over-year.

Despite the revenue growth, the company reported a net loss of $982,000 for the third quarter, marginally higher than the $973,000 loss in the same quarter of 2023. For the nine-month period, the net loss improved to $2.7 million from $3.7 million in the prior year, indicating a reduction in losses. The company’s total expenses for the three months ended September 30, 2024, were $4.5 million, slightly down from $4.5 million in the same period of 2023, while expenses for the nine months decreased to $13.1 million from $13.6 million.

As of September 30, 2024, Regional Health Properties reported total assets of $60.1 million, a decrease from $62.2 million at the end of 2023. Total liabilities increased slightly to $62.4 million from $62.0 million, contributing to an accumulated deficit that rose to $84.6 million. The company’s stockholders' equity showed a significant decline, resulting in a deficit of $2.4 million compared to a positive equity of $185,000 at the end of 2023.

Strategically, the company is navigating financial challenges, including a notice of default on two USDA loans and an SBA loan totaling $4.1 million. In response, Regional Health is negotiating a forbearance agreement with lenders and has secured a $0.5 million line of credit to address unpaid principal and interest. Additionally, the company is actively seeking to collect past due rent and expedite the collection of aged patient receivables.

The company’s operational structure remains focused on long-term care and senior housing, with its primary segments being Real Estate Services and Healthcare Services. As of September 30, 2024, the company operated eleven healthcare properties, including nine skilled nursing facilities. The company is also facing regulatory challenges, including new staffing requirements mandated by CMS, which may impact its financial condition.

Overall, while Regional Health Properties has shown some revenue growth, it continues to grapple with significant financial and operational challenges that could affect its future viability.