Atlanta, Georgia (December 22, 2003) - SunLink Health Systems, Inc. (AMEX: SSY) today commented on the passage of the Medicare Prescription Drug Modernization Act of 2003. SunLink believes the bill recognizes certain needs of hospitals upon which rural and urban seniors depend for their health care. The new law contains provisions for Medicare to reimburse rural hospitals at the same rate enjoyed by large urban hospitals and increases payments to hospitals such as SunLink's hospitals that care for a disproportionate share of the poor and the uninsured.
SunLink estimates that if and when the provisions of the Act are fully implemented (which could be as late as 2005), they would on a pro forma annualized basis (compared to fiscal 2003) have the following effect on SunLink's operations:
- increase hospital disproportionate share payments to SunLink hospitals by approximately $1.6 million as a result of the 6.25% increase in the disproportionate share hospital cap,
- increase Medicare inpatient reimbursement to SunLink hospitals by approximately $325,000 as a result of standardizing the base DRG payment amount,
- increase Medicare in-patient reimbursement to SunLink hospitals by approximately $150,000 as a result of changing the labor share portion of the Medicare DRG base rate.
SunLink Health Systems, Inc. currently operates eight community hospitals and related businesses in the southeast and Midwest. Each SunLink facility is the only hospital in its community. SunLink's operating strategy is to link patients' needs with dedicated physicians and health professionals to deliver quality, efficient medical care in each community it serves.
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, 2003.
