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Sun­Link Health Sys­tems is plan­ning to delist its shares and sell un­der­per­form­ing fa­cil­i­ties. All four of its hos­pi­tals are cur­rently un­der­per­form­ing and it has hired ad­vis­ers to eval­u­ate the sale of at least two of them, the sys­tem said in a news re­lease. Sun­Link’s hos­pi­tals are 31-bed Call­away Com­mu­nity Hospi­tal, Ful­ton, Mo.; 49bed Ch­es­ta­tee Re­gional Hospi­tal, Dahlonega, Ga.; 150-bed North Ge­or­gia Med­i­cal Cen­ter, El­li­jay; and 61-bed Trace Re­gional Hospi­tal, Hous­ton, Miss. The com­pany said it would use the pro­ceeds of the sales to fund its work­ing cap­i­tal needs, not­ing that it has been un­able to raise suf­fi­cient cap­i­tal in the debt or eq­uity mar­kets on “ac­cept­able terms.” Sun­Link last year sold two of its hos­pi­tals—Dex­ter (Mo.) Hospi­tal and Me­mo­rial Hospi­tal of Adel (Ga.)—to help pay down debt. The com­pany re­ported a net loss of $1.42 mil­lion for the first quar­ter of its fis­cal 2013 and has re­ported a net loss in four of its past five quar­ters. Although it fin­ished fis­cal 2012 in the black, the com­pany recorded a 5% de­crease in con­sol­i­dated net rev­enue com­pared with the pre­vi­ous year. Sun­Link said in its news re­lease that it plans to pay cash to buy up out­stand­ing shares from hold­ers of 99 or fewer shares; it is of­fer­ing $1.50 per share plus a $100 bonus upon com­ple­tion of the ten­der of­fer. The com­pany, which has a mar­ket cap­i­tal­iza­tion of $10.8 mil­lion, needs to re­duce its share­hold­ers to fewer than 300 in or­der to delist.

—Beth Kutscher MEM­PHIS, Tenn.—

Aca­dia Health­care Co., Franklin, Tenn., is fur­ther ex­pand­ing its port­fo­lio with a sec­ond ac­qui­si­tion this year. The pub­licly traded be­hav­ioral health­care com­pany, which has seen its share price dou­ble dur­ing the past 12 months, said it has pur­chased 170-bed Delta Med­i­cal Cen­ter, Mem­phis, which of­fers psy­chi­atric and gen­eral acute-care ser­vices. Terms were not dis­closed. In a news re­lease, Aca­dia Chair­man and CEO Joey Ja­cobs said the deal “gives us the op­por­tu­nity to treat acute in­pa­tient psy­chi­atric pa­tients with med­i­cal com­pli­ca­tions.” While many of Delta’s beds are for acute in­pa­tient psy­chi­atric pa­tients, the med­i­cal cen­ter also of­fers ser­vices such as car­di­ol­ogy, hy­per­baric wound care, sleep stud­ies, surgery and an emer­gency de­part­ment. Aca­dia forged its first deal last month with a not-for-profit or­ga­ni­za­tion, ac­quir­ing a psy­chi­atric hospi­tal from South Ge­or­gia Med­i­cal Cen­ter, Val­dosta. Kevin Camp­bell, a man­ag­ing di­rec­tor at Avon­dale Part­ners, said in a note to clients that the two ac­qui­si­tions show Aca­dia’s will­ing­ness to pur­sue deals that move be­yond its tra­di­tional in­ter­est in for-profit, acute in­pa­tient psy­chi­atric fa­cil­i­ties and res­i­den­tial treat­ment cen­ters. He said Delta gen­er­ated be­tween $30 mil­lion and $50 mil­lion in to­tal rev­enue for its fis­cal 2012, which ended in March, and posted an op­er­at­ing loss of $2 mil­lion.

—Beth Kutscher

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