Missouri Hospital Sale Boosts SunLink's 2Q Profit

Atlanta-based SunLink Health Systems has posted $3.94 million in profit for the second quarter of its 2013 fiscal year, due in large part to its sale of Missouri Southern Healthcare in Dexter, Mo.

In October, SunLink confirmed SoutheastHEALTH, based in Cape Girardeau, Mo., acquired the leasehold interest in Missouri Southern Healthcare, which was operated by Dexter Hospital LLC and includes a 50-bed acute-care hospital. The net proceeds of the sale totaled $7.4 million.

SunLink's $3.94 million profit in the second quarter compared with a loss of $935,000 in the same quarter last year. Net revenues for the four-hospital system equaled $27.9 million, a drop of 4 percent from the second quarter in FY 2012.

For the first six months of its FY 2013, SunLink's profit equaled $2.51 million, compared with a loss of $2.5 million in the first six months last year. Net revenues are still down for the first six months, totaling $53.5 million. As of Dec. 31, 2012, SunLink also had more than $7.73 million of cash and cash equivalents on hand, compared with only $519,000 at the same time last year.

SunLink has been struggling financially for several years now, and earlier this month, the company announced it was looking to go private by buying "odd lots" of its shares. In addition, SunLink management is looking to sell two of its remaining four hospitals. SunLink's four community hospitals have a cumulative total of 232 licensed beds, and it also has two nursing homes with 166 beds.

More Articles on SunLink Health Systems:

SunLink Health Systems Terminates Contract of COO Ron Turner
SunLink Health Systems Looking to Go Private
SunLink Health Systems Nets $1.4M Loss in 1Q of FY 2013

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