The board of directors of SunLink Health Systems in Atlanta has adopted a new shareholder rights plan.
A shareholder rights plan, commonly called a poison pill, protects shareholders in the event there is a takeover bid for a company. Last year, Naples, Fla.-based Health Management Associates ratified a poison pill after its largest shareholder, New York City-based hedge fund Glenview Capital Management, increased its ownership to almost 15 percent.
SunLink's plan only goes into effect when a person acquires or plans to acquire 20 percent or more of the system's outstanding shares. SunLink originally adopted a poison pill in 2004, but it expired earlier this month.
SunLink currently owns and operates four small community hospitals and a pharmacy business. The company has been attempting to go private and has divested several hospitals during the past few years.
In the quarter ended Dec. 31, SunLink posted a $188,000 operating loss compared with an almost $1 million operating loss in the same period in 2012. Overall, SunLink posted a quarterly profit of $227,000, compared with a profit of $3.9 million in 2012, although the 2012 figure included earnings from sold hospitals. SunLink still lost $931,000 through the first six months of its fiscal year, posted almost $1.2 million in net losses last quarter.
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