Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2018 | May 11, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SSY | |
Entity Registrant Name | SUNLINK HEALTH SYSTEMS INC | |
Entity Central Index Key | 96,793 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 7,416,814 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 3,541 | $ 10,494 |
Restricted cash | 0 | 1,000 |
Receivables - net | 5,884 | 5,906 |
Inventory | 1,974 | 2,159 |
Prepaid expense and other assets | 3,083 | 3,062 |
Total current assets | 14,482 | 22,621 |
Property, plant and equipment, at cost | 30,103 | 28,609 |
Less accumulated depreciation | 19,559 | 18,319 |
Property, plant and equipment - net | 10,544 | 10,290 |
Noncurrent Assets: | ||
Intangible assets - net | 1,500 | 1,587 |
Income tax receivable | 296 | 0 |
Other noncurrent assets | 969 | 838 |
Total noncurrent assets | 2,765 | 2,425 |
TOTAL ASSETS | 27,791 | 35,336 |
Current liabilities: | ||
Accounts payable | 1,254 | 1,571 |
Current maturities of long-term debt, net of debt issuance costs | 258 | 6,710 |
Accrued payroll and related taxes | 2,381 | 2,098 |
Due to third party payors | 293 | 658 |
Other accrued expenses | 1,099 | 1,277 |
Total current liabilities | 5,285 | 12,314 |
Long-Term Liabilities | ||
Long-term debt, net of debt issuance costs | 2,863 | 0 |
Noncurrent liability for professional liability risks | 752 | 1,040 |
Other noncurrent liabilities | 304 | 289 |
Total long-term liabilities | 3,919 | 1,329 |
Commitment and Contingencies | ||
Shareholders' Equity | ||
Preferred Shares, authorized and unissued, 2,000 shares | 0 | 0 |
Common Shares, without par value: Issued and outstanding, 7,417 shares at March 31, 2018 and 9,163 at June 30, 2017 | 3,708 | 4,581 |
Additional paid-in capital | 11,009 | 13,103 |
Retained earnings | 4,197 | 4,336 |
Accumulated other comprehensive loss | (327) | (327) |
Total Shareholders' Equity | 18,587 | 21,693 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 27,791 | $ 35,336 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred shares, authorized | 2,000,000 | 2,000,000 |
Preferred shares, unissued | 2,000,000 | 2,000,000 |
Common shares, without par value | ||
Common shares, issued | 7,417,000 | 9,163,000 |
Common shares, outstanding | 7,417,000 | 9,163,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Operating revenues (net of contractual allowances) | $ 13,550 | $ 13,883 | $ 41,021 | $ 41,321 |
Less provision for bad debts of Healthcare Facilities segment | 133 | 184 | 363 | 321 |
Net revenues | 13,417 | 13,699 | 40,658 | 41,000 |
Costs and Expenses | ||||
Cost of goods sold | 5,073 | 5,523 | 14,623 | 15,592 |
Salaries, wages and benefits | 6,045 | 5,872 | 17,697 | 17,476 |
Provision for bad debts of Pharmacy segment | 237 | 126 | 445 | 342 |
Supplies | 448 | 455 | 1,361 | 1,373 |
Purchased services | 672 | 692 | 2,021 | 2,113 |
Other operating expenses | 1,052 | 1,194 | 3,639 | 4,015 |
Rent and lease expense | 157 | 142 | 471 | 409 |
EHR incentive payments | 0 | 0 | (21) | 0 |
Depreciation and amortization | 464 | 466 | 1,332 | 1,376 |
Operating Loss | (731) | (771) | (910) | (1,696) |
Other Income (Expense): | ||||
Gain on sale of assets | 183 | 2 | 181 | 3,019 |
Gain on economic damages claim, net | 0 | 0 | 944 | 0 |
Loss on extinguishment of debt | 0 | 0 | (238) | (243) |
Interest expense, net | (56) | (129) | (302) | (507) |
Earnings (Loss) from Continuing Operations before income taxes | (604) | (898) | (325) | 573 |
Income Tax Benefit | 0 | (8) | (296) | (236) |
Earnings (Loss) from Continuing Operations | (604) | (890) | (29) | 809 |
Earnings (Loss) from Discontinued Operations, net of tax | 16 | (135) | (110) | 4,287 |
Net Earnings (Loss) | (588) | (1,025) | (139) | 5,096 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive Earnings (Loss) | $ (588) | $ (1,025) | $ (139) | $ 5,096 |
Continuing Operations: | ||||
Basic | $ (0.08) | $ (0.10) | $ 0 | $ 0.09 |
Diluted | (0.08) | (0.10) | 0 | 0.09 |
Discontinued Operations: | ||||
Basic | 0 | (0.01) | (0.01) | 0.46 |
Diluted | 0 | (0.01) | (0.01) | 0.45 |
Net Earnings (Loss): | ||||
Basic | (0.08) | (0.11) | (0.02) | 0.54 |
Diluted | $ (0.08) | $ (0.11) | $ (0.02) | $ 0.54 |
Weighted-Average Common Shares Outstanding: | ||||
Basic | 7,417 | 9,334 | 8,564 | 9,408 |
Diluted | 7,417 | 9,334 | 8,564 | 9,429 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net Cash Used in Operating Activities | $ (33) | $ (4,999) |
Cash Flows Provided by (Used in) Investing Activities: | ||
Expenditures for property, plant and equipment - continuing operations | (1,502) | (1,097) |
Proceeds from sale of other assets | 412 | 4,942 |
Proceeds from sale of hospital | 0 | 14,620 |
Net Cash Provided by (Used in) Investing Activities | (1,090) | 18,465 |
Cash Flows Used in Financing Activities: | ||
Repurchase of common shares | (2,974) | (640) |
Payments on long-term debt - continuing operations | (3,856) | (3,850) |
Receipt (Deposit) of restricted cash | 1,000 | (1,000) |
Net Cash Used in Financing Activities | (5,830) | (5,490) |
Net increase (decrease) in Cash and Cash Equivalents | (6,953) | 7,976 |
Cash and Cash Equivalents Beginning of Period | 10,494 | 3,261 |
Cash and Cash Equivalents End of Period | 3,541 | 11,237 |
Cash Paid for: | ||
Interest | 269 | 458 |
Income taxes | $ 0 | $ 141 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. – Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements as of March 31, 2018 and for the three and nine month periods ended March 31, 2018 and 2017 have been prepared in accordance with Rule 10-01 S-X 10-K |
Business Operations
Business Operations | 9 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Operations | Note 2. – Business Operations Business Operations SunLink Health Systems, Inc., through subsidiaries, owns businesses which provide healthcare products and services in certain markets in the southeastern United States. Our business is composed of two segments, the Healthcare Services segment and the Pharmacy segment. Our Healthcare Services segment subsidiaries own and operate an 84-bed 66-bed 100-bed The business strategy of SunLink is to focus its efforts on expanding the services and improving the operations and profitability of its existing Healthcare Services and Pharmacy businesses. The Company is investing in upgrades and improvements to certain of its Healthcare Services and Pharmacy businesses, while seeking to sell certain of its subsidiaries’ underperforming assets. The Company has used a portion of the cash proceeds from recent dispositions of assets to pay down debt and certain other liabilities, and to repurchase common shares in tender offers completed in February and December 2017. The Company may also use existing cash, as well as any net proceeds from future dispositions, if any, to improve its existing businesses, make acquisitions of Healthcare Services and Pharmacy businesses, prepay debts, return capital to shareholders including through potential public or private purchases of shares, and for other general corporate purposes. There is no assurance that any further dispositions will be authorized by the Company’s Board of Directors or, if authorized, that any such transactions will be completed or, if completed, will result in net cash proceeds to the Company on a before or after tax basis. The Company considers the disposition of business segments, facilities and operations based on a variety of factors in addition to under-performance, including asset values, return on investments, competition from existing and potential competitors, capital improvement needs, the prevailing reimbursement environment under various Federal and state programs (e.g., Medicare and Medicaid) and private payors, and other corporate objectives. The Company believes certain facilities in its Healthcare Services segment as well as its Pharmacy segment continue to under-perform, and the Company has engaged advisors to assist it in evaluating the possible sale of its Pharmacy business lines. On January 11, 2018, Carmichael’s Cashway Pharmacy, Inc., a wholly owned subsidiary of the Company, sold the assets of a retail pharmacy operation for approximately $410. A pre-tax Throughout these notes to the consolidated financial statements, all references to “SunLink,” “we,” “our,” “ours,” “us” and the “Company” refer to SunLink Health Systems, Inc. and our consolidated subsidiaries. References to our specific operations refer to operations conducted through our subsidiaries and references to “we,” “our,” “ours,” and “us” in such context refer to the operations. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 3. – Discontinued Operations All of the businesses discussed in the note below are reported as discontinued operations and the condensed consolidated financial statements for all prior periods have been adjusted to reflect this presentation. Results for all of the businesses included in discontinued operations are presented in the following table: Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Net Revenues: Chestatee Hospital $ 0 $ 0 $ 0 $ 2,369 Other Sold Hospitals 77 (68 ) 71 (288 ) $ 77 $ (68 ) $ 71 $ 2,081 Earnings (Loss) before income taxes: Chestatee Hospital $ 0 $ (104 ) $ (38 ) $ 83 Other Sold Hospitals 61 (69 ) 45 (304 ) Life sciences and engineering (36 ) (37 ) (108 ) (112 ) Gain (Loss) on sale of Chestatee Hospital (9 ) 0 (9 ) 7,270 Earnings (Loss) before income taxes 16 (210 ) (110 ) 6,937 Income tax expense 0 (75 ) 0 2,650 Earnings (Loss) from discontinued operations $ 16 $ (135 ) $ (110 ) $ 4,287 Chestatee Hospital pre-tax Other Sold Hospitals Life Sciences and Engineering Segment The components of pension expense for the three and nine months ended March 31, 2018 and 2017, respectively, were as follows: Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Interest Cost $ 14 $ 13 $ 42 $ 39 Expected return on assets (9 ) (8 ) (27 ) (24 ) Amortization of prior service cost 31 32 93 97 Net pension expense $ 36 $ 37 $ 108 $ 112 SunLink contributed $105 to the plan in the nine months ended March 31, 2018 and expects to contribute an additional $35 during the last fiscal quarter of the fiscal year ending June 30, 2018. |
Economic Damages Claim
Economic Damages Claim | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Economic Damages Claim | Note 4. – Economic Damages Claim The Pharmacy Segment subsidiary asserted claims for economic damages in connection with the Deepwater Horizon Settlement Program related to the event which occurred in 2010. In January 2018, these claims were settled and payments of approximately $944 (net of costs and attorneys’ fees) were received. The net settlements are recognized as a gain in the Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) for the nine months ended March 31, 2018. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Restricted Cash | Note 5. – Restricted Cash Under the Fourth Amendment to the Trace RDA Loan dated January 7, 2017 (see Note 9. Long-Term Debt), a deposit of $1,000 in a blocked interest bearing account was held by the lender. Under the Fifth Amendment to the Trace RDA Loan dated December 26, 2017, the blocked account was eliminated and a prepayment was made on the Trace RDA loan. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Note 6. – Shareholders’ Equity Common Share Purchase Tender Offer – Stock-Based Compensation – |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivables | 9 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Revenue Recognition and Accounts Receivables | Note 7. – Revenue Recognition and Accounts Receivables The Company’s subsidiaries recognize revenues in the period in which services are provided. Accounts receivable primarily consist of amounts due from third-party payors and patients. The Company’s subsidiaries’ ability to collect outstanding receivables is critical to their results of operations and cash flows. Amounts the Company’s subsidiaries receive for treatment of patients covered by governmental programs such as Medicare and Medicaid and other third-party payors such as health maintenance organizations (“HMOs”), preferred provider organizations (“PPOs”) and other private insurers are generally less than the Company’s subsidiaries’ established billing rates. Additionally, to provide for accounts receivable that could become uncollectible in the future an allowance for doubtful accounts is established to reduce the carrying value of such receivables to their estimated net realizable value. Accordingly, the revenues and accounts receivable reported in the accompanying unaudited condensed consolidated financial statements are recorded at the net amount expected to be received. Revenues by payor were as follows for the three and nine months ended March 31, 2018 and 2017: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Healthcare Facilities Segment: Medicare $ 2,485 $ 2,079 $ 7,167 $ 6,447 Medicaid 2,091 2,285 6,328 7,185 Self-pay 91 86 532 356 Managed Care & Other Insurance 793 871 2,278 2,248 Other 330 364 1,091 1,139 Revenues before provision for doubtful accounts 5,790 5,685 17,396 17,375 Provision for doubtful accounts (133 ) (184 ) (363 ) (321 ) Healthcare Facilities Segment Net Revenues 5,657 5,501 17,033 17,054 Pharmacy Segment Net Revenues 7,760 8,198 23,625 23,946 Total Net Revenues $ 13,417 $ 13,699 $ 40,658 $ 41,000 The net revenues of the Pharmacy Segment are presented net of contractual adjustments. The provision for bad debts of the Pharmacy Segment is presented as a component of operating expenses in the Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss). Summary information for accounts receivable is as follows: March 31, June 30, Accounts receivable (net of contractual allowances) $ 6,453 $ 6,458 Less allowance for doubtful accounts (569 ) (552 ) Patient accounts receivable – net $ 5,884 $ 5,906 The following is a summary of the activity in the allowance for doubtful accounts for the Healthcare Services Segment and the Pharmacy Segment for the three and nine months ended March 31, 2018 and 2017: Healthcare Pharmacy Total Three Months Ended March 31, 2018 Balance at January 1, 2018 $ 326 $ 219 $ 545 Additions recognized as a reduction to revenues: Continuing Operations 133 237 370 Discontinued Operations (4 ) 0 (4 ) Accounts written off, net of recoveries (82 ) (260 ) (342 ) Balance at March 31, 2018 $ 373 $ 196 $ 569 Healthcare Services Pharmacy Total Nine Months Ended March 31, 2018 Balance at July 1, 2017 $ 328 $ 224 $ 552 Additions recognized as a reduction to revenues: Continuing Operations 363 445 808 Discontinued Operations 2 0 2 Accounts written off, net of recoveries (320 ) (473 ) (793 ) Balance at March 31, 2018 $ 373 $ 196 $ 569 Healthcare Services Pharmacy Total Three Months Ended March 31, 2017 Balance at January 1, 2017 $ 332 $ 400 $ 732 Additions recognized as a reduction to revenues: Continuing Operations 184 126 310 Discontinued Operations (14 ) 0 (14 ) Accounts written off, net of recoveries (180 ) (138 ) (318 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 Healthcare Services Pharmacy Total Nine Months Ended March 31, 2017 Balance at July 1, 2016 $ 624 $ 367 $ 991 Additions recognized as a reduction to revenues: Continuing Operations 321 342 663 Discontinued Operations 378 0 378 Accounts written off, net of recoveries (1,001 ) (321 ) (1,322 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 New Accounting Pronouncement for Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. This ASU provides companies the option of applying a full or modified retrospective approach upon adoption. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company expects to adopt this ASU on July 1, 2018 and is currently implementing its plan for adoption and evaluating the impact on its revenue recognition policies, procedures and control framework and the resulting impact on its consolidated financial position, results of operations and cash flows. A significant element of executing this plan is the process of reviewing sources of revenue and evaluating the patient account population to determine the appropriate distribution of patient accounts into portfolios with similar collection experience that, when evaluated for collectability, will result in a materially consistent revenue amount for such portfolios as if each patient account was evaluated on a contract-by-contract basis. The Company is currently evaluating the appropriate portfolios to apply in its collectability analysis and is considering the impact of applying the new standard when its patient accounts are evaluated in those portfolios. The Company expects this process will be completed later in 2018. Additionally, the adoption of the new accounting standard will impact the presentation on the Company’s statement of operations for a significant component of its provision for bad debts. After adoption of the new standard, the majority of what is currently classified as the provision for bad debts will be reflected as an implicit price concession as defined in the standard and therefore an adjustment to net patient revenue. The Company will continue to evaluate certain changes in collectability on its self-pay patient accounts receivable resulting from certain credit and collection issues not assessed at the date of service, including bankruptcy, and recognize such amounts in the provision for bad debts included in operating expenses on the statement of operations. The Company cannot reasonably estimate at this time the quantitative impact that the adoption of this accounting standard will have on the financial statements of the Company. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8. – Intangible Assets Intangibles consist of the following, net of amortization: March 31, June 30, Pharmacy Segment Intangibles Trade Name (non-amortizing) 1,180 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,392 ) (1,305 ) Net Intangibles $ 1,500 $ 1,587 Amortization expense was $29 and $35 for the three months ended March 31, 2018 and 2017, respectively. Amortization expense was $87 and $106 for the nine months ended March 31, 2018 and 2017, respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. – Long-Term Debt Long-term debt consisted of the following: March 31, 2018 June 30, 2017 Trace RDA Loan $ 3,347 $ 7,191 Capital lease obligations and other 0 12 Total 3,347 7,203 Less unamortized debt issuance costs (226 ) (493 ) Less current maturities (258 ) (6,710 ) Long-term Debt $ 2,863 $ 0 Trace RDA Loan – The Trace RDA Loan contains various terms and conditions, including financial restrictions and limitations, and affirmative and negative covenants. The covenants include financial covenants measured on a quarterly basis which require Trace to comply with a ratio of current assets to current liabilities, debt service coverage, fixed charge ratio, and funded debt to EBITDA, all as defined in the Trace RDA Loan. The ability of Trace to continue to make the required debt service payments under the Trace RDA Loan depends on, among other things, its ability to generate sufficient cash, including from operating activities and asset sales. If Trace is unable to generate sufficient cash to meet debt service payments on the Trace RDA Loan, including in the event the lender were to declare an event of default and accelerate the maturity of the indebtedness, such failure could have material adverse effects on the Company. The Trace RDA Loan is guaranteed by the Company and one subsidiary. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. – Income Taxes Income tax benefit of $0 ($0 federal tax and $0 state tax expense) and income tax benefit of $8 ($32 federal tax benefit and $24 state tax expense) was recorded for continuing operations for the three months ended March 31, 2018 and 2017, respectively. Income tax benefit of $296 ($296 federal tax benefit and $0 state tax expense) and income tax benefit of $236 ($221 federal tax benefit and $15 state tax benefit) was recorded for continuing operations for the nine months ended March 31, 2018 and 2017, respectively. In accordance with the Financial Accounting Standards Board Accounting Standards Codification (‘ASC”) 740, we evaluate our deferred taxes quarterly to determine if adjustments to our valuation allowance are required based on the consideration of available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future results of operations, the duration of applicable statuary carryforward periods and conditions of the healthcare industry. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related temporary differences in the financial basis and the tax basis of the assets become deductible. The value of our deferred tax assets will depend on applicable income tax rates. The Tax Cut and Jobs Act (“TCJA”) was enacted on December 22, 2017. Under ASC 740, the impact of changes in tax law must be recorded in the financial statements in the reporting period that included the date of enactment. However, the SEC and the FASB both recognize that the magnitude of this law change will require extensive analysis and calculations to conform to the new provisions. The SEC issued Staff Accounting Bulletin (‘SAB”) 118 on December 22, 2017. SAB 118 provides registrants with guidance on when and how to report the impact of the law change when not all necessary information is available. At March 31, 2018, consistent with the above processes, we evaluated the need for a valuation allowance against our deferred tax assets and determined that it was more likely than not that only our federal alternative minimum tax (“AMT”) tax credits of $296 would be realized. The AMT credit represents a provisional amount that will be finalized upon the filing of the Company’s federal income tax return for the year ended June 30, 2017. The filing of this return will occur prior to the Company’s fiscal year end which is within the measurement period. Under TCJA, AMT tax credits will now become refundable in conjunction with the repeal of the corporate AMT. For tax years beginning after December 31, 2017 and before January 1, 2022, the AMT credit is refundable in an amount equal to 50% (100% for the 2021 tax year) of the excess of the credit for the tax year over the amount of the credit allowable for the year against regular tax liability. This results in the Company receiving its entire AMT credit of $296 as a refund no later than fiscal 2022 and as such a valuation allowance is no longer needed for the AMT credit carryforward. However, in accordance with ASC 740, we recognized a valuation allowance of $8,071 against all other net deferred tax asset items at March 31, 2018. We conducted our evaluation by considering available positive and negative evidence to determine our ability to realize our deferred tax assets. In our evaluation, we gave more significant weight to evidence that was objective in nature as compared to subjective evidence. Also, more significant weight was given to evidence that directly related to our current financial performance as compared to less current evidence and future plans. The principal negative evidence that led us to determine at March 31, 2018 that $8,071 of the net deferred tax assets resulting from non-AMT pre-tax For Federal income tax purposes, at March 31, 2018, the Company had approximately $13,400 of estimated net operating loss carry-forwards available for use in future years subject to the limitations of the provisions of Internal Revenue Code Section 382. These net operating loss carryforwards expire in 2025. With the enactment of TCJA, Federal net operating loss carryforwards generated in taxable years ending after December 31, 2017 now have no expiration date. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. – Commitments and Contingencies Contractual obligations, commitments and contingencies related to outstanding debt, non-cancelable Payments due in: Long-Term Operating Interest on 1 year $ 258 $ 574 $ 172 2 years 296 423 173 3 years 315 340 155 4 years 333 132 136 5+ years 2,145 4 355 $ 3,347 $ 1,473 $ 991 On September 8, 2017, the Georgia Survey agency of the Georgia Department of Community Health (“DCH“) conducted a Complaint Investigation survey to determine whether our nursing home in Ellijay, Georgia was in compliance with federal program requirements for nursing homes participating in Medicare and/or Medicaid programs. As a result of this survey, the nursing home received from the DCH a notice of deficiencies which were identified as posing an immediate jeopardy to resident health and safety and which had to be corrected immediately. DCH also notified the nursing home of its intent to recommend civil monetary penalties. In response to the survey findings, the nursing home adopted a succession of plans to remedy the matters identified. On November 6, 2017, DCH advised the nursing home that its latest plan of correction was accepted and on November 20, 2017, DCH advised the nursing home that it was in substantial compliance with its long-term care requirements; however the nursing home anticipates further surveys to evaluate its implementation of the plans of correction. A Civil Money Penalty (“CMP”) was imposed by the Department of Health & Human Services Centers for Medicare and Medicaid Services on January 4, 2018 which resulted in $170 expensed in the nine months ended March 31, 2018. The CMP was paid January 18, 2018. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. – Related Party Transactions A director of the Company is a member of a law firm which provides services to SunLink. The Company expensed an aggregate of $25 and $109 for legal services to this law firm in the three months ended March 31, 2018 and 2017, respectively. The Company expensed an aggregate of $215 and $481 for legal services to this law firm in the nine months ended March 31, 2018 and 2017, respectively. Included in the Company’s condensed consolidated balance sheets at March 31, 2018 and June 30, 2017 is $12 and $38, respectively, of amounts payable to this law firm. |
Sale of Assets
Sale of Assets | 9 Months Ended |
Mar. 31, 2018 | |
Carmichael's Cashway Pharmacy, Inc [Member] | |
Sale of Assets | Note 13. – Sale of Assets On January 11, 2018, Carmichael’s Cashway Pharmacy, Inc., a wholly owned subsidiary of the Company, sold the assets of a retail pharmacy operation it operates for approximately $410. A pre-tax |
Financial Information by Segmen
Financial Information by Segment | 9 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | Note 14. – Financial Information by Segment Under ASC Topic No. 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of SunLink’s chief executive officer and other members of SunLink’s senior management. Our two reportable operating segments are Healthcare Services and Pharmacy. We evaluate performance of our operating segments based on revenue and operating profit (loss). At the beginning of the current fiscal year, the Company modified the approach to certain assets, and expense allocations to calculate segment assets, operating profit and depreciation and amortization. All prior year amounts have been changed to consistently apply the changed allocation method used in the current year. Segment information as of March 31, 2018 and 2017 and for the three and nine months then ended is as follows: Healthcare Facilities Pharmacy Corporate and Other Total As of and for the three months ended March 31, 2018 Net revenues from external customers $ 5,657 $ 7,760 $ 0 $ 13,417 Operating profit (loss) 114 (367 ) (478 ) (731 ) Depreciation and amortization 167 297 0 464 Assets 14,394 9,104 4,293 27,791 Expenditures for property, plant and equipment 167 263 0 430 As of and for the three months ended March 31, 2017 Net revenues from external customers $ 5,501 $ 8,198 $ 0 $ 13,699 Operating profit (loss) (146 ) (324 ) (301 ) (771 ) Depreciation and amortization 176 289 1 466 Assets 13,936 11,519 12,678 38,133 Expenditures for property, plant and equipment 25 264 0 289 As of and for the nine months ended March 31, 2018 Net revenues from external customers $ 17,033 $ 23,625 $ 0 $ 40,658 Operating profit (loss) 118 285 (1,313 ) (910 ) Depreciation and amortization 485 845 2 1,332 Assets 14,394 9,104 4,293 27,791 Expenditures for property, plant and equipment 980 522 0 1,502 As of and for the nine months ended March 31, 2017 Net revenues from external customers $ 17,054 $ 23,946 $ 0 $ 41,000 Operating profit (loss) 146 (511 ) (1,331 ) (1,696 ) Depreciation and amortization 563 810 3 1,376 Assets 13,936 11,519 12,678 38,133 Expenditures for property, plant and equipment 358 739 0 1,097 |
Revenue Recognition and Accou20
Revenue Recognition and Accounts Receivables (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
New Accounting Pronouncement for Revenue Recognition | New Accounting Pronouncement for Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. This ASU provides companies the option of applying a full or modified retrospective approach upon adoption. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company expects to adopt this ASU on July 1, 2018 and is currently implementing its plan for adoption and evaluating the impact on its revenue recognition policies, procedures and control framework and the resulting impact on its consolidated financial position, results of operations and cash flows. A significant element of executing this plan is the process of reviewing sources of revenue and evaluating the patient account population to determine the appropriate distribution of patient accounts into portfolios with similar collection experience that, when evaluated for collectability, will result in a materially consistent revenue amount for such portfolios as if each patient account was evaluated on a contract-by-contract basis. The Company is currently evaluating the appropriate portfolios to apply in its collectability analysis and is considering the impact of applying the new standard when its patient accounts are evaluated in those portfolios. The Company expects this process will be completed later in 2018. Additionally, the adoption of the new accounting standard will impact the presentation on the Company’s statement of operations for a significant component of its provision for bad debts. After adoption of the new standard, the majority of what is currently classified as the provision for bad debts will be reflected as an implicit price concession as defined in the standard and therefore an adjustment to net patient revenue. The Company will continue to evaluate certain changes in collectability on its self-pay patient accounts receivable resulting from certain credit and collection issues not assessed at the date of service, including bankruptcy, and recognize such amounts in the provision for bad debts included in operating expenses on the statement of operations. The Company cannot reasonably estimate at this time the quantitative impact that the adoption of this accounting standard will have on the financial statements of the Company. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Results for all of the businesses included in discontinued operations are presented in the following table: Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Net Revenues: Chestatee Hospital $ 0 $ 0 $ 0 $ 2,369 Other Sold Hospitals 77 (68 ) 71 (288 ) $ 77 $ (68 ) $ 71 $ 2,081 Earnings (Loss) before income taxes: Chestatee Hospital $ 0 $ (104 ) $ (38 ) $ 83 Other Sold Hospitals 61 (69 ) 45 (304 ) Life sciences and engineering (36 ) (37 ) (108 ) (112 ) Gain (Loss) on sale of Chestatee Hospital (9 ) 0 (9 ) 7,270 Earnings (Loss) before income taxes 16 (210 ) (110 ) 6,937 Income tax expense 0 (75 ) 0 2,650 Earnings (Loss) from discontinued operations $ 16 $ (135 ) $ (110 ) $ 4,287 |
Components of Pension Expense | The components of pension expense for the three and nine months ended March 31, 2018 and 2017, respectively, were as follows: Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Interest Cost $ 14 $ 13 $ 42 $ 39 Expected return on assets (9 ) (8 ) (27 ) (24 ) Amortization of prior service cost 31 32 93 97 Net pension expense $ 36 $ 37 $ 108 $ 112 |
Revenue Recognition and Accou22
Revenue Recognition and Accounts Receivables (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Summary of Revenues | Revenues by payor were as follows for the three and nine months ended March 31, 2018 and 2017: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Healthcare Facilities Segment: Medicare $ 2,485 $ 2,079 $ 7,167 $ 6,447 Medicaid 2,091 2,285 6,328 7,185 Self-pay 91 86 532 356 Managed Care & Other Insurance 793 871 2,278 2,248 Other 330 364 1,091 1,139 Revenues before provision for doubtful accounts 5,790 5,685 17,396 17,375 Provision for doubtful accounts (133 ) (184 ) (363 ) (321 ) Healthcare Facilities Segment Net Revenues 5,657 5,501 17,033 17,054 Pharmacy Segment Net Revenues 7,760 8,198 23,625 23,946 Total Net Revenues $ 13,417 $ 13,699 $ 40,658 $ 41,000 |
Summary Information for Accounts Receivable | Summary information for accounts receivable is as follows: March 31, June 30, Accounts receivable (net of contractual allowances) $ 6,453 $ 6,458 Less allowance for doubtful accounts (569 ) (552 ) Patient accounts receivable – net $ 5,884 $ 5,906 |
Summary of Allowance for Doubtful Accounts | The following is a summary of the activity in the allowance for doubtful accounts for the Healthcare Services Segment and the Pharmacy Segment for the three and nine months ended March 31, 2018 and 2017: Healthcare Pharmacy Total Three Months Ended March 31, 2018 Balance at January 1, 2018 $ 326 $ 219 $ 545 Additions recognized as a reduction to revenues: Continuing Operations 133 237 370 Discontinued Operations (4 ) 0 (4 ) Accounts written off, net of recoveries (82 ) (260 ) (342 ) Balance at March 31, 2018 $ 373 $ 196 $ 569 Healthcare Services Pharmacy Total Nine Months Ended March 31, 2018 Balance at July 1, 2017 $ 328 $ 224 $ 552 Additions recognized as a reduction to revenues: Continuing Operations 363 445 808 Discontinued Operations 2 0 2 Accounts written off, net of recoveries (320 ) (473 ) (793 ) Balance at March 31, 2018 $ 373 $ 196 $ 569 Healthcare Services Pharmacy Total Three Months Ended March 31, 2017 Balance at January 1, 2017 $ 332 $ 400 $ 732 Additions recognized as a reduction to revenues: Continuing Operations 184 126 310 Discontinued Operations (14 ) 0 (14 ) Accounts written off, net of recoveries (180 ) (138 ) (318 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 Healthcare Services Pharmacy Total Nine Months Ended March 31, 2017 Balance at July 1, 2016 $ 624 $ 367 $ 991 Additions recognized as a reduction to revenues: Continuing Operations 321 342 663 Discontinued Operations 378 0 378 Accounts written off, net of recoveries (1,001 ) (321 ) (1,322 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangibles consist of the following, net of amortization: March 31, June 30, Pharmacy Segment Intangibles Trade Name (non-amortizing) 1,180 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,392 ) (1,305 ) Net Intangibles $ 1,500 $ 1,587 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: March 31, 2018 June 30, 2017 Trace RDA Loan $ 3,347 $ 7,191 Capital lease obligations and other 0 12 Total 3,347 7,203 Less unamortized debt issuance costs (226 ) (493 ) Less current maturities (258 ) (6,710 ) Long-term Debt $ 2,863 $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations, Commitments and Contingencies | Contractual obligations, commitments and contingencies related to outstanding debt, non-cancelable Payments due in: Long-Term Operating Interest on 1 year $ 258 $ 574 $ 172 2 years 296 423 173 3 years 315 340 155 4 years 333 132 136 5+ years 2,145 4 355 $ 3,347 $ 1,473 $ 991 |
Financial Information by Segm26
Financial Information by Segment (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | We evaluate performance of our operating segments based on revenue and operating profit (loss). At the beginning of the current fiscal year, the Company modified the approach to certain assets, and expense allocations to calculate segment assets, operating profit and depreciation and amortization. All prior year amounts have been changed to consistently apply the changed allocation method used in the current year. Segment information as of March 31, 2018 and 2017 and for the three and nine months then ended is as follows: Healthcare Facilities Pharmacy Corporate and Other Total As of and for the three months ended March 31, 2018 Net revenues from external customers $ 5,657 $ 7,760 $ 0 $ 13,417 Operating profit (loss) 114 (367 ) (478 ) (731 ) Depreciation and amortization 167 297 0 464 Assets 14,394 9,104 4,293 27,791 Expenditures for property, plant and equipment 167 263 0 430 As of and for the three months ended March 31, 2017 Net revenues from external customers $ 5,501 $ 8,198 $ 0 $ 13,699 Operating profit (loss) (146 ) (324 ) (301 ) (771 ) Depreciation and amortization 176 289 1 466 Assets 13,936 11,519 12,678 38,133 Expenditures for property, plant and equipment 25 264 0 289 As of and for the nine months ended March 31, 2018 Net revenues from external customers $ 17,033 $ 23,625 $ 0 $ 40,658 Operating profit (loss) 118 285 (1,313 ) (910 ) Depreciation and amortization 485 845 2 1,332 Assets 14,394 9,104 4,293 27,791 Expenditures for property, plant and equipment 980 522 0 1,502 As of and for the nine months ended March 31, 2017 Net revenues from external customers $ 17,054 $ 23,946 $ 0 $ 41,000 Operating profit (loss) 146 (511 ) (1,331 ) (1,696 ) Depreciation and amortization 563 810 3 1,376 Assets 13,936 11,519 12,678 38,133 Expenditures for property, plant and equipment 358 739 0 1,097 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) $ in Thousands | Jan. 11, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)SegmentBedServices | Mar. 31, 2017USD ($) |
Business And Organization [Line Items] | |||||
Number of segments | Segment | 2 | ||||
Proceeds from sale | $ 0 | $ 14,620 | |||
Earnings (Loss) before income taxes | $ 16 | $ (210) | $ (110) | $ 6,937 | |
Carmichael's Cashway Pharmacy, Inc [Member] | |||||
Business And Organization [Line Items] | |||||
Proceeds from sale | $ 410 | ||||
Earnings (Loss) before income taxes | $ 183 | ||||
Pharmacy Segment [Member] | Louisiana [Member] | |||||
Business And Organization [Line Items] | |||||
Number of material service lines | Services | 4 | ||||
Healthcare Services Segment [Member] | Community Hospital [Member] | |||||
Business And Organization [Line Items] | |||||
Number of licensed-bed owned and operated by a subsidiary | Bed | 84 | ||||
Healthcare Services Segment [Member] | Nursing Home [Member] | Mississippi [Member] | |||||
Business And Organization [Line Items] | |||||
Number of bed in nursing home owned and operated by subsidiary | Bed | 66 | ||||
Healthcare Services Segment [Member] | Nursing Home [Member] | Georgia [Member] | |||||
Business And Organization [Line Items] | |||||
Number of bed in nursing home owned and operated by subsidiary | Bed | 100 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Detail) - USD ($) $ in Thousands | Aug. 19, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | $ 16 | $ (210) | $ (110) | $ 6,937 | |
Income tax expense | 0 | (75) | 0 | 2,650 | |
Earnings (Loss) from discontinued operations | 16 | (135) | (110) | 4,287 | |
Chestatee Hospital [Member] | |||||
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | $ 7,270 | ||||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Net Revenues: | |||||
Net revenues | 77 | (68) | 71 | 2,081 | |
Discontinued Operations, Disposed of by Sale [Member] | Chestatee Hospital [Member] | |||||
Net Revenues: | |||||
Net revenues | 0 | 0 | 0 | 2,369 | |
Earnings (Loss) before income taxes: | |||||
Gain (Loss) on sale | (9) | 0 | (9) | 7,270 | |
Earnings (Loss) before income taxes | 0 | (104) | (38) | 83 | |
Discontinued Operations, Disposed of by Sale [Member] | Other Sold Hospitals [Member] | |||||
Net Revenues: | |||||
Net revenues | 77 | (68) | 71 | (288) | |
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | 61 | (69) | 45 | (304) | |
Discontinued Operations, Disposed of by Sale [Member] | Life Sciences and Engineering [Member] | |||||
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | $ (36) | $ (37) | $ (108) | $ (112) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Thousands | Aug. 19, 2016USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2014Hospital |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale | $ 0 | $ 14,620 | ||||
Earnings (Loss) before income taxes | $ 16 | $ (210) | (110) | $ 6,937 | ||
Number of Hospitals Sold | Hospital | 3 | |||||
Chestatee Hospital [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Earnings (Loss) before income taxes | $ 7,270 | |||||
Purchase price adjustment due to from hospital buyer | 328 | 328 | ||||
Chestatee Hospital [Member] | Asset Purchase Agreement [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale | $ 15,000 | |||||
Life Sciences and Engineering [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contribution to pension plan | 105 | |||||
Expected contribution to pension plan during the remaining fiscal year | $ 35 | $ 35 |
Discontinued Operations - Compo
Discontinued Operations - Components of Pension Expense (Detail) - Life Sciences and Engineering [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest Cost | $ 14 | $ 13 | $ 42 | $ 39 |
Expected return on assets | (9) | (8) | (27) | (24) |
Amortization of prior service cost | 31 | 32 | 93 | 97 |
Net pension expense | $ 36 | $ 37 | $ 108 | $ 112 |
Economic Damages Claim - Additi
Economic Damages Claim - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Loss Contingencies [Line Items] | ||||
Gain on economic damages claim, net | $ 0 | $ 0 | $ 944 | $ 0 |
Pharmacy Segment [Member] | ||||
Loss Contingencies [Line Items] | ||||
Gain on economic damages claim, net | $ 944 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 0 | $ 1,000 |
Trace RDA Loan [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 1,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 21, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Nov. 21, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation, amount recognized | $ 1 | $ 5 | $ 7 | $ 59 | ||
Common Share Purchase Tender Offer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common share purchase price per share | $ 1.60 | $ 1.60 | ||||
Number of shares tendered | 3,725,656 | |||||
Number of shares purchased | 1,745,751 | |||||
Total cost of share purchased | $ 2,794 | |||||
Share purchase program expiration date | Dec. 21, 2017 | |||||
2011 Director Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted | 0 | 72,000 |
Revenue Recognition and Accou34
Revenue Recognition and Accounts Receivables - Summary of Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | $ 13,550 | $ 13,883 | $ 41,021 | $ 41,321 |
Provision for doubtful accounts | (133) | (184) | (363) | (321) |
Net revenues | 13,417 | 13,699 | 40,658 | 41,000 |
Healthcare Facilities Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 5,790 | 5,685 | 17,396 | 17,375 |
Provision for doubtful accounts | (133) | (184) | (363) | (321) |
Net revenues | 5,657 | 5,501 | 17,033 | 17,054 |
Healthcare Facilities Segment [Member] | Medicare [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 2,485 | 2,079 | 7,167 | 6,447 |
Healthcare Facilities Segment [Member] | Medicaid [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 2,091 | 2,285 | 6,328 | 7,185 |
Healthcare Facilities Segment [Member] | Self-Pay [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 91 | 86 | 532 | 356 |
Healthcare Facilities Segment [Member] | Managed Care & Other Insurance [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 793 | 871 | 2,278 | 2,248 |
Healthcare Facilities Segment [Member] | Other [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 330 | 364 | 1,091 | 1,139 |
Pharmacy Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | $ 7,760 | $ 8,198 | $ 23,625 | $ 23,946 |
Revenue Recognition and Accou35
Revenue Recognition and Accounts Receivable - Summary Information for Accounts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Receivables [Abstract] | ||||||
Accounts receivable (net of contractual allowances) | $ 6,453 | $ 6,458 | ||||
Less allowance for doubtful accounts | (569) | $ (545) | (552) | $ (710) | $ (732) | $ (991) |
Patient accounts receivable - net | $ 5,884 | $ 5,906 |
Revenue Recognition and Accou36
Revenue Recognition and Accounts Receivable - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Beginning balance | $ 545 | $ 732 | $ 552 | $ 991 |
Accounts written off, net of recoveries | (342) | (318) | (793) | (1,322) |
Ending balance | 569 | 710 | 569 | 710 |
Continuing Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | 370 | 310 | 808 | 663 |
Discontinued Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | (4) | (14) | 2 | 378 |
Healthcare Facilities Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Beginning balance | 326 | 332 | 328 | 624 |
Accounts written off, net of recoveries | (82) | (180) | (320) | (1,001) |
Ending balance | 373 | 322 | 373 | 322 |
Healthcare Facilities Segment [Member] | Continuing Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | 133 | 184 | 363 | 321 |
Healthcare Facilities Segment [Member] | Discontinued Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | (4) | (14) | 2 | 378 |
Pharmacy Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Beginning balance | 219 | 400 | 224 | 367 |
Accounts written off, net of recoveries | (260) | (138) | (473) | (321) |
Ending balance | 196 | 388 | 196 | 388 |
Pharmacy Segment [Member] | Continuing Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | 237 | 126 | 445 | 342 |
Pharmacy Segment [Member] | Discontinued Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total | $ 1,500 | $ 1,587 |
Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | 2,892 | 2,892 |
Accumulated Amortization | (1,392) | (1,305) |
Total | 1,500 | 1,587 |
Trade Name [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 1,180 | 1,180 |
Customer Relationships [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,089 | 1,089 |
Medicare License [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 623 | $ 623 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 29 | $ 35 | $ 87 | $ 106 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations and other | $ 0 | $ 12 |
Total | 3,347 | 7,203 |
Total | 3,347 | 7,203 |
Less unamortized debt issuance costs | (226) | (493) |
Less current maturities | (258) | (6,710) |
Total Long-term debt, excluding current maturities, total | 2,863 | 0 |
Trace RDA Loan [Member] | ||
Debt Instrument [Line Items] | ||
RDA Loan | $ 3,347 | $ 7,191 |
Long-Term Debt (Trace RDA Loan
Long-Term Debt (Trace RDA Loan and Trace Working Capital Loan) - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 26, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||
Prepayment of loan | $ 3,856 | $ 3,850 | |
Trace RDA Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity period | 15 years | ||
Prepayment of loan | $ 3,548 | ||
Monthly principal and interest payment of loan | $ 39 | ||
Debt instrument description | Prime rate plus 1% with a floor of 5.5% | ||
Debt instrument interest rate, basis spread | 1.00% | ||
Debt instrument, interest rate floor | 5.50% | ||
Effective interest rate | 5.75% | ||
Interest bearing deposit under financial covenant | $ 1,000 | ||
Trace RDA Loan [Member] | Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Loan agreement amount | $ 9,975 | ||
Date of loan agreement | Jul. 5, 2012 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2022 | |
Schedule of Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 0 | $ (8) | $ (296) | $ (236) | ||
Federal tax expense (benefit) | 0 | (32) | (296) | (221) | ||
State tax expense (benefit) | 0 | $ 24 | 0 | $ (15) | ||
Deferred income tax valuation allowance | 8,071 | 8,071 | ||||
Net operating loss carry-forward | $ 13,400 | $ 13,400 | ||||
Net operating loss carryforward expiration year | 2,025 | |||||
For tax years beginning after March 31, 2018 and before January 1, 2022 [Member] | ||||||
Schedule of Income Taxes [Line Items] | ||||||
Percentage of AMT credit refundable | 50.00% | |||||
For the 2021 tax year [Member] | ||||||
Schedule of Income Taxes [Line Items] | ||||||
Percentage of AMT credit refundable | 100.00% | |||||
Later Than [Member] | Scenario, Forecast [Member] | ||||||
Schedule of Income Taxes [Line Items] | ||||||
Federal alternative minimum tax, tax credits | $ 296 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contractual Obligations, Commitments and Contingencies (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Long-Term Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | $ 258 |
Payments due in 2 years | 296 |
Payments due in 3 years | 315 |
Payments due in 4 years | 333 |
Payments due in 5+ years | 2,145 |
Contractual obligations, commitments and contingencies | 3,347 |
Operating Leases [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | 574 |
Payments due in 2 years | 423 |
Payments due in 3 years | 340 |
Payments due in 4 years | 132 |
Payments due in 5+ years | 4 |
Contractual obligations, commitments and contingencies | 1,473 |
Interest on Outstanding Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | 172 |
Payments due in 2 years | 173 |
Payments due in 3 years | 155 |
Payments due in 4 years | 136 |
Payments due in 5+ years | 355 |
Contractual obligations, commitments and contingencies | $ 991 |
Commitments and Contingencies43
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Mar. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued penalties expense | $ 170 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Management [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |||||
Legal services to these law firms | $ 25 | $ 109 | $ 215 | $ 481 | |
Amount payable to law firms | $ 12 | $ 12 | $ 38 |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 11, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Income Statement Equity Method Investments [Line Items] | |||||
Proceeds from sale | $ 0 | $ 14,620 | |||
Earnings (Loss) before income taxes | $ 16 | $ (210) | $ (110) | $ 6,937 | |
Carmichael's Cashway Pharmacy, Inc [Member] | |||||
Income Statement Equity Method Investments [Line Items] | |||||
Proceeds from sale | $ 410 | ||||
Earnings (Loss) before income taxes | $ 183 |
Financial Information by Segm46
Financial Information by Segment - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Financial Information by Segm47
Financial Information by Segment - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | $ 13,417 | $ 13,699 | $ 40,658 | $ 41,000 | |
Operating profit (loss) | (731) | (771) | (910) | (1,696) | |
Depreciation and amortization | 464 | 466 | 1,332 | 1,376 | |
Assets | 27,791 | 38,133 | 27,791 | 38,133 | $ 35,336 |
Expenditures for property, plant and equipment | 430 | 289 | 1,502 | 1,097 | |
Healthcare Facilities Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 5,657 | 5,501 | 17,033 | 17,054 | |
Operating Segments [Member] | Healthcare Facilities Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 5,657 | 5,501 | 17,033 | 17,054 | |
Operating profit (loss) | 114 | (146) | 118 | 146 | |
Depreciation and amortization | 167 | 176 | 485 | 563 | |
Assets | 14,394 | 13,936 | 14,394 | 13,936 | |
Expenditures for property, plant and equipment | 167 | 25 | 980 | 358 | |
Operating Segments [Member] | Pharmacy Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 7,760 | 8,198 | 23,625 | 23,946 | |
Operating profit (loss) | (367) | (324) | 285 | (511) | |
Depreciation and amortization | 297 | 289 | 845 | 810 | |
Assets | 9,104 | 11,519 | 9,104 | 11,519 | |
Expenditures for property, plant and equipment | 263 | 264 | 522 | 739 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 0 | 0 | 0 | 0 | |
Operating profit (loss) | (478) | (301) | (1,313) | (1,331) | |
Depreciation and amortization | 0 | 1 | 2 | 3 | |
Assets | 4,293 | 12,678 | 4,293 | 12,678 | |
Expenditures for property, plant and equipment | $ 0 | $ 0 | $ 0 | $ 0 |