Sunlink Health Systems, Inc. Announces $2 Million Expansion, Capital and Operating Improvements at Trace Regional Hospital

Rhea-AI Summary

SunLink Health Systems, Inc. (NYSE American: SSY) announced its Trace Forward Capital Plan, a $2 million initiative to enhance Trace Regional Hospital's facilities and services. Key upgrades include an 8-bed expansion of the Pathways Care Program, modernized patient rooms, a comprehensive replacement of heating, air conditioning, and roofing systems. The plan also includes enhanced diagnostic and IT equipment, expanding telemedicine services and improving security. These enhancements aim to meet the rising demand for senior healthcare in northeast Mississippi and are funded primarily through the hospital's cash reserves.

Positive

• Investment of $2 million in facility upgrades enhances service capacity.
• Expansion of Pathways Care Program adds 8 beds, addressing demand for senior behavioral services.
• Upgrades to patient care infrastructure may lead to improved patient outcomes and satisfaction.

Negative

• None.

SunLink Health Systems, Inc. (NYSE American: SSY) announced today that its wholly-owned subsidiary, Trace Regional Hospital, has implemented its Trace Forward Capital Plan totaling approximately $2 million to expand, upgrade and improve its physical plant, patient care, ancillary services and support areas. The Trace Forward Capital Plan includes an 8-bed expansion of its Pathways Care Program, a geriatric behavioral health service, which will bring Pathways to 26 total beds. The Plan also features modernized, acute care patient rooms with renovated support areas, a complete hospital-wide replacement and upgrade of its heating and air conditioning systems, replacement of a substantial portion of the building roof, enhanced Women’s services equipment, new diagnostic equipment, additional information technology equipment and improved IT security services. In connection of these improvements Trace has recently added new ultrasound equipment and expanded telemedicine services to augment its existing digital mammography capabilities.

Marianne Johnson, Trace COO/CNO and executive in charge of the Pathways Care Program, commented, “The expansion and upgrade of our Pathways Care Program will allow us to meet the growing demand for quality senior behavioral services as well as acute care hospital services in our northeast Mississippi service area.”

Sheila Brockman, Trace CEO, said, “Our major capital expenditures are being undertaken in a manner that minimizes disruption in our medical center services and are expected to be completed by June 30, 2021. They are being paid out of Trace’s cash on hand and reflect our commitment to the quality of and access to healthcare services in the Houston community and Chickasaw County, and our confidence in the growth potential of the northeast Mississippi area. We wish to thank our elected Mississippi and Federal officials and staff for making these investments possible under various provisions of the CARES Act, which are funding a portion of the Trace Forward Capital Plan, and for prioritizing quality and access to care for the citizens of the Houston and Chickasaw County area during this uncertain and potentially disastrous period of the COVID-19 pandemic.”

Trace Regional Hospital is an 84-bed licensed acute care hospital, which includes the 18-bed Pathways Care Program and Floy Dyer Nursing Home, a 66-bed skilled nursing facility. Trace, Pathways and Floy Dyer are located in Houston, Mississippi, and focus primarily on senior healthcare services.

SunLink Health Systems, Inc. is the parent company of subsidiaries that own and operate healthcare properties and businesses in the Southeast. Each of the Company’s businesses is operated locally with a strategy of linking patients’ needs with healthcare professionals. For additional information on SunLink Health Systems, Inc., please visit the Company’s website.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the company’s business strategy. These forward-looking statements are subject to certain risks, uncertainties, and other factors, which could cause actual results, performance, and achievements to differ materially from those anticipated. Certain of those risks, uncertainties and other factors are disclosed in more detail in the company’s Annual Report on Form 10-K for the year ended June 30, 2020 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.

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FAQ

What is the Trace Forward Capital Plan by SunLink Health Systems, Inc. (SSY)?

The Trace Forward Capital Plan is a $2 million initiative to improve Trace Regional Hospital's facilities and patient care services.

How many new beds will be added to the Pathways Care Program under SSY's plan?

The Pathways Care Program will expand by 8 beds, increasing the total to 26 beds.

What improvements are included in SSY's capital plan for Trace Regional Hospital?

Improvements include modernized patient rooms, heating and air conditioning upgrades, roof replacement, new diagnostic equipment, and enhanced telemedicine services.

When is the completion date for the improvements in the Trace Forward Capital Plan?

The enhancements are expected to be completed by June 30, 2021.

How is the Trace Forward Capital Plan being financed?

The plan is being financed using cash on hand from Trace Regional Hospital.