4. DISCONTINUED OPERATIONS

All of the businesses discussed below are reported as discontinued operations and the consolidated financial statements for all prior periods have been adjusted to reflect this presentation.

Chestatee Hospital—On August 19, 2016, Southern Health Corporation of Dahlonega, Inc., (“Chestatee”), a wholly owned subsidiary of the Company, sold substantially all of the assets and certain liabilities of Chestatee Regional Hospital in Dahlonega, Georgia through an asset purchase agreement for $15,000 subject to adjustment for the book value of certain assets and certain liabilities assumed at the sale date. The pre-tax gain on sale of $7,270 is subject to adjustment for various purchase price adjustments. Chestatee retained certain liabilities, including for employee related liabilities and certain Medicare and Medicaid liabilities, relating to the period it owned and operated the hospital. A portion of the net proceeds were used for the repayment of debt. A purchase price adjustment of $328 was due to the Company from the hospital buyer at June 30, 2018 as a post-closing adjustment to the purchase price as confirmed by a binding decision of an independent accountant rendered pursuant to the purchase agreement. The Company sent a letter to the buyer demanding payment of the purchase price adjustment. When payment was not made, on July 2, 2018, the Company filed a complaint in the Superior Court of Cobb County Georgia to collect $348 which included the post-closing adjustment and other items. On July 30, 2018, a settlement was reached with the buyer resulting in the buyer agreeing to pay $380 which included payment of the post-closing adjustment to the purchase price and also transfers the responsibility for the settlement and payments or benefits of any unresolved Medicare and Medicaid cost reports and other government repayments of Chestatee to the buyer. At June 30, 2018, a receivable of $380 is recorded for this settlement, which was received by the Company on August 2, 2018.

Other Sold Hospitals – Subsidiaries of the Company have sold substantially all of the assets of three hospitals (“Other Sold Hospitals”) during the period July 2, 2012 to December 31, 2014. The income (loss) before income taxes of the Other Sold Hospitals results primarily from the effects of prior year Medicare and Medicaid cost report settlements and retained professional liability claims expenses.

Life Sciences and Engineering Segment—SunLink retained a defined benefit retirement plan which covered substantially all of the employees of this segment when the segment was sold in fiscal 1998. Effective February 28, 1997, the plan was amended to freeze participant benefits and close the plan to new participants. Pension expense and related tax benefit or expense is reflected in the results of operations for this segment for the fiscal years ended June 30, 2018 and 2017.

Results for all the businesses included in discontinued operations are presented in the following table:

Discontinued Operations—Summary Statement of Earnings Information


	2018			2017
Net Revenues:
Other Sold Hospitals	$	82		$	423
Chestatee Hospital		0			2,388

	$	82		$	2,811

Earnings (Loss) Before Income Taxes:
Chestatee Hospital	$	(41	)	$	56
Other Sold Hospitals		(147	)		304
Life sciences and engineering		(159	)		(149	)

Earnings (loss) before income taxes		(347	)		211

Gain (Loss) on Sale:
Chestatee Hospital		(113	)		7,265

Gain (Loss) on Sale		(113	)		7,265

Income tax expense (benefit)		0			2,829

Earnings (Loss) from discontinued operations	$	(460	)	$	4,647