SunLink Health Systems to sell Trace Regional Medical Center

SunLink Health Systems announced that its subsidiary, Crown Healthcare Investments, has signed an agreement with Progressive Health Group for the sale of the subsidiary that owns and operates Trace Regional Medical Center, which includes a hospital, skilled nursing facility and three patient clinics in Chickasaw County, MS, for approximately $8M. The sale is subject to, among other things, the Buyer’s satisfactory completion of its due diligence investigation and a number of customary closing conditions. The company expects to recognize a pre-tax gain of approximately $1.7M on the transaction, which is scheduled to close on December 15. The transaction will therefore be reported in SunLink Health Systems’s Q2. The proceeds of the sale of approximately $7.5M after payment of closing costs, will be used for general corporate purposes. As a result of the Company’s agreement on November 10, 2023 to sell Trace Regional Medical Center, SunLink Health Systems, Inc. will delay its filing with the SEC of its quarterly report on Form 10-Q for the period ended September 30 which is due by November 14.