SunLink Health Systems Unit Enters Option Agreement to Sell Assets of Chilton Medical Center
SunLink Health Systems, Inc. (NYSE: SSY) today announced that its subsidiary, Central Alabama Medical Associates, LLC (CAMA), has entered into an option agreement with the Chilton County (AL) Hospital Board (Board) under which the Board has the option for 90 days to acquire CAMA's real and personal property relating to Chilton Medical Center in Clanton, AL, for $1,500,000. CAMA currently leases the Chilton property to a third party hospital operator who is in default under the CAMA lease and the hospital license held by the third party operator was suspended by the Alabama Department of Public Health effective on October 29, 2012. The Board and CAMA applied jointly for a receiver to take over the operations of the third party operator and, if successful, the Board intends to submit plans and applications to re-open the hospital. If the Board is able to re-establish the hospital's operations to their satisfaction, it has indicated it intends to exercise the option to acquire the property from CAMA. However, there can be no assurance the hospital will be re-opened or that the option will be exercised.
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