SSY
Industry:
Consumer Distribution & Retail IT Services

DESCRIPTION

SunLink Health Systems is a small Atlanta-based healthcare company operating two businesses: a pharmacy business in Louisiana and a small IT services subsidiary. The pharmacy business, SunLink ScriptsRx, is the core operation and runs four service lines — retail pharmacy, institutional pharmacy, non-institutional pharmacy, and DME. The retail pharmacy serves walk-in customers in southwestern Louisiana. The institutional pharmacy delivers specialty and non-specialty drugs and biologics to nursing homes, assisted living facilities, behavioral hospitals, hospices, and correctional facilities. The non-institutional pharmacy delivers similar products directly to patients at home. DME covers the sale and rental of medical equipment to institutional clients and home care patients. SunLink's IT subsidiary, SHS Technology, provides hosting, consulting, and software implementation services to smaller healthcare providers. SunLink earns revenue primarily from prescription volume across its pharmacy channels and from DME sales and rentals, with a significant portion of revenue coming from Medicare and Medicaid reimbursement. Reimbursement rates are set by regulators and PBMs, limiting SunLink's pricing power. SunLink has been divesting its legacy hospital assets and the board is actively pursuing a merger or other extraordinary transaction.

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