Business Operations

3 Months Ended

Sep. 30, 2011

Business Operations [Abstract]

Business Operations

Note 2. – Business Operations

Business Operations

SunLink Health Systems, Inc. is a provider of healthcare services in certain rural and exurban markets in the United States. SunLink's business is composed of two business segments:

• Healthcare Facilities, which consist of

• Our six community hospitals which have a total of 342 licensed beds;

• Our three nursing homes, which have a total of 261 licensed beds, each of which is located adjacent to a corresponding SunLink community hospital; and

• Our one home health agency, which operates in connection with a corresponding SunLink community hospital.

• Specialty Pharmacy, which consists of

• Specialty pharmacy services;

• Durable medical equipment;

• Institutional pharmacy services; and

• Retail pharmacy products and services, all of which are conducted in rural markets.

SunLink has conducted its healthcare facilities business since 2001 and its specialty pharmacy business since April 2008.

On April 8, 2011, SunLink Health Systems, Inc. announced that it has reached a preliminary agreement and executed a letter of intent with Foundation HealthCare Affiliates, LLC ("Foundation") and New Age Fuel, Inc. ("New Age"), and Foundation Investment Affiliates I, LLC ("FIA") for the non-cash merger of certain Foundation and New Age, FIA, subsidiaries and affiliates with and into newly formed acquisition subsidiaries of SunLink. On November 8, 2011, SunLink and Foundation announced that they had ended their previously announced merger discussions. SunLink's Board and management concluded that the business plan that the Company has adopted is fundamentally sound and has determined to focus the Company's strategic efforts on enhancing its existing hospital portfolio and on pursuing potential hospital acquisitions. SunLink is committed to enhancing shareholder value while maintaining high standards of responsibility to its patients, employees and the communities it serves and will continue to pursue strategic alternatives consistent with that commitment.