Progressive Health Group has reached an agreement with SunLink Health Systems’ subsidiary Crown Healthcare Investments to acquire Trace Regional Medical Center for around $8m.
Trace Regional Medical Center has a hospital, a skilled nursing facility, and three patient clinics in Chickasaw County, Mississippi, US.
This transaction is expected to be completed on 15 December, after due diligence by Progressive Health and fulfilment of customary conditions.
SunLink will report the deal in its second fiscal quarter and anticipates a pre-tax gain of around $1.7m from the sale.
The company will use the deal proceeds of around $7.5m, after covering closing costs, for general corporate needs.
Due to its decision to offload Trace Regional Medical Center on 10 November, SunLink Health will postpone the submission of its quarterly report on Form 10-Q for the period ending 30 September 2023 to the US Securities and Exchange Commission.
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The original timeline for this filing was 14 November 2023.
The company plans to submit its Form 10-Q report for the quarter ending 30 September 2023 within the five-calendar day extension period.
It stated: “A Form 12b-25 will be filed with the SEC which allows for an automatic extension of five calendar days to file the Form 10-Q and have it be considered a timely filing.”
SunLink Health has subsidiaries that manage healthcare properties and businesses in the southeastern US.
The company operates each of its businesses locally, aiming to connect patients’ needs with healthcare professionals.