In the fiscal year ended June 30, SunLink Health Systems, a for-profit hospital operator based in Atlanta, posted a profit of $4.5 million thanks in large part to divesting hospitals throughout the past several years.
However, the company's net revenue dropped 4.4 percent to $108.2 million. SunLink's earnings from discontinued operations totaled $6.1 million, but excluding those earnings, which include the sales of hospitals, SunLink posted an operating loss of $1.1 million. Before taxes, SunLink gained about $10.5 million from selling Missouri Southern Healthcare, which was operated by Dexter Hospital, and Memorial Hospital of Adel (Ga.).
In February, SunLink executives announced the financially beleaguered system wanted to purchase thousands of its common shares to go private. In March, after the deadline to purchase shares from stockholders had passed, SunLink extended the deadline, but the company has still been unable to deregister with the Securities and Exchange Commission.
Officials have said deregistering the company's shares "would result in significant cost savings," and the board will likely consider alternative options to go private, including another stock repurchase attempt, a reverse stock split or a cash-out merger.
SunLink currently owns and operates four community hospitals with a cumulative total of 232 licensed beds. It also has two nursing homes with 166 beds. Executives previously said they may also try to sell two of its remaining hospitals, which are scattered throughout rural areas in the South. About 56.6 percent of SunLink's net reimbursement comes from Medicare and Medicaid, which is around the norm for nonprofit hospitals, but its hospitals also have a self-pay/uninsured rate of 13.7 percent, far above the 7.6 percent median for nonprofit hospitals.
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