SunLink Health Systems, Inc. (NYSEAMERICAN: SSY) is flying early on in the premarket hours this morning, and for good reason. The company announced an expansion exciting investors. While the gains so far have been impressive, they may just be the tip of the iceberg. Here’s what you need to know:
Skip to What You Want to Read
- SunLink Health Systems Announces Expansion
- Management Commentary
- These Gains Could Be Just Beginning
- Final Thoughts
SunLink Health Systems Announces Expansion
As mentioned above, SunLink Health Systems is having an incredibly strong start to the trading session after announcing an expansion. In a press release, the company said that its wholly-owned subsidiary, Trace Regional Hospital, has implemented its Trace Forward Capital Plan.
The plan is an expansion plan with a total value of about $2 million. The expansion will include the upgrade and improvement of its physical plat, patient care, ancillary services and support areas.
SSY went on to explain that the plan includes an 8-bed expansion of its Pathways Care Program, a geriatric behavioral health service. This will bring Pathways’ bed count to a total of 26.
The company went on to say that through the plan, it will modernize acute care patient rooms with renovated support areas. Moreover a complete hospital-wide replacement and upgrade of its heating and air conditioning systems will take place as well as a replacement of a portion of the building’s roof, enhanced Women’s services equipment, new diagnostic equipment, additional information technology equipment, and improved IT security services will all be featured in the expansion.
SSY also said that in connection with these improvements, Trace has recently added new ultrasound equipment and expanded telemedicine services to augment its existing digital mammography capabilities.
In a statement, Marianne Johnson, COO/CNO and executive in charge of the Pathways Care Program, had the following to offer:
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.
The above statement was followed up by Sheila Brockman, CEO at the SSY subsidiary, Trace. Here’s what she had to say:
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.
These Gains Could Be Just Beginning
The gains that we’ve seen in SunLink Health Systems may just be beginning. Sure, the expansion news itself is exciting, but what this news is doing is important as well.
With the news, SSY stock is finding itself listed on stock screeners and chatted about on social media across the web. Ultimately, the news is leading to increased awareness of the stock, and therefore, increased demand.
That’s huge for a company with less than four million shares in its public float. Keep in mind, like any other market, the stock market largely operates on supply and demand. When supplies are low and demand is high, prices must tick up. Well, SSY has less than four million shares available to the public, and demand is skyrocketing for shares at the moment. As such, the strong gains we’ve seen so far this morning may just be beginning.
All in all, the news out of SunLink Health Systems this morning proved to be overwhelmingly positive. Not only will the expansion lead to an ability to increase revenue due to more beds being available in the hospital, it has greatly increased the awareness of this little-known stock. All in all, SSY stock is one to watch closely.