Regional Health Properties, Sunlink Health Agree To Merge, Former Sunrise Ceo Joins Board

Regional Health Properties (NYSE: RHE) and SunLink Health Systems have agreed to merge, and they are bringing a couple of familiar faces in senior living with them as advisors.

Regional Health is merging with SunLink, with plans for SunLink shareholders to own about 43% of the combined company.

Regional Health manages 11 senior care properties and skilled nursing facilities, totaling just over 1,200 beds, and SunLink holds investments in one community hospital, two skilled nursing facilities, a healthcare technology company and a specialty pharmacy company, according to the companies’ websites.

Morrison will keep his role as president and CEO when the companies combine, and current SunLink CEO Robert Thornton, Jr. will take on the role of executive vice president of corporate strategy, while current SunLink CFO Mark Stockslager will continue his work as chief financial officer under the new merger.

The transaction is expected to be complete this spring, and is subject to closing conditions and regulatory approval, according to the news release. The newly combined company will operate from a headquarters in Atlanta, Georgia.

Along with the merger, Regional is adding two senior living executives to the board: Former Sunrise Senior Living CEO Chris Winkle and Scott Kellman, who is the former CEO at nonprofit senior living provider American Eagle Lifecare Corporation.

Winkle is a board member of Beazer Homes (NYSE: BZH), Direct Supply, and R.D. Merrill, the owner of Merrill Gardens, which operates 70 senior housing communities. Kellman previously worked as CEO at Care Investment Trust and was the COO at Omega Healthcare Investors (NYSE: OHI), along with holding senior roles with CIT Healthcare and Healthcare Property Investors. 

The merger “will create a combined company with a stronger balance sheet and greater scale,” according to Brent Morrison, Regional’s chairman and CEO.

“By combining SunLink’s complementary assets with Regional’s platform of healthcare facilities, the combined company will be well-positioned for future growth,” he said in a press release about the merger.

Representatives for Regional and SunLink did not immediately respond to requests for more information Wednesday.

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