Rural hospital operator SunLink Health Systems, Atlanta, took a $13.3 million pre-tax charge in its fiscal fourth quarter to write down its 2008 acquisition of a specialty pharmacy provider, according to a news release.
SunLink reports $10.7 million loss for fiscal 2011
SunLink reported an after-tax loss of $8.9 million for its fourth quarter ended June 30, compared with a loss of $1.5 million in the year-ago quarter. Excluding impairment charges in both quarters, the company would have recorded losses of $549,000 in fiscal 2011’s fourth quarter versus $767,000 in the year-ago quarter. Revenue declined 0.9%, to $43.2 million, because of a 22% decline in revenue from its Carmichael’s Cashway Pharmacy segment, to $6.8 million. SunLink’s healthcare facilities recorded a 4.4% increase in revenue, to $36.4 million.
SunLink paid $24 million, including $19 million in cash, to acquire Carmichael’s in April 2008, according to a release announcing the deal.
The weak economy, systems upgrades and selective paring of services have caused the decline in the company’s specialty pharmacy business, according to the release.
For the fiscal year, SunLink reported a loss of $10.7 million on revenue of $181.2 million.
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