Business Operations

3 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Business Operations

Note 2. – Business Operations

Business Operations

SunLink Health Systems, Inc., through subsidiaries owns businesses which are providers of healthcare services in certain markets in the United States. SunLink’s business is composed of the ownership of two business segments:

Healthcare Services

• A subsidiary which owns and operates Trace Regional Hospital and Floy Dyer Nursing Home (“Trace”), an 84 licensed-bed acute care hospital, located in Houston, Mississippi, which includes an 18-bed geriatric psychology unit (“GPU”), and a 66-bed nursing home. This facility focuses primarily on senior healthcare services.

• A subsidiary which owns a medical building and approximately four (4) acres of land in Clanton, Alabama. A portion of the medical office building is currently partially rented to two tenants.

• Asubsidiary which owns approximately five (5) acres of unimproved land in Houston, Mississippi.

• A subsidiary, SunLink Health Systems Technology (SHS Technology), which provides information technology (IT) to outside customers and to SunLink subsidiaries.

Pharmacy

The Pharmacy segment, which is composed of four operational areas:

• Retail pharmacy products and services, consisting of retail pharmacy sales conducted in rural markets at two locations in Louisiana.

• Institutional pharmacy services consisting of the provision of specialty and non-specialty pharmaceutical and biological products to institutional clients or to patients in institutional settings, such as nursing homes, assisted living facilities, behavioral and specialty hospitals, hospice, and correctional facilities.

• Non-institutional pharmacy services consisting of the provision of specialty and non-specialty pharmaceutical and biological products to clients or patients in non-institutional settings including private residential homes.

• Durable medical equipment products and services (“DME”), consisting primarily of the sale and rental of products for institutional clients or to patients in institutional settings and patient-administered home care.

SunLink subsidiaries have conducted the Healthcare Services business since 2001 and the Pharmacy operations since 2008. Our Pharmacy segment currently is operated through Carmichael’s Cashway Pharmacy, Inc. (“Carmichael”), a subsidiary of our SunLink ScriptsRx, LLC subsidiary.

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