SOURCE: Sun Healthcare Group, Inc.

Sun Healthcare Group, Inc.

January 03, 2011 06:00 ET

Sun Healthcare Group, Inc. Announces the Acquisition of Countryside Hospice Care, Inc.; Expands SolAmor Hospice Operations

IRVINE, CA--(Marketwire - January 3, 2011) - Sun Healthcare Group, Inc. (NASDAQ: SUNH) announced today that its subsidiary, SolAmor Hospice Corporation, completed the acquisition of Countryside Hospice Care, Inc. on December 29, 2010. Countryside is a privately-held, Medicare-certified hospice company headquartered in Anniston, Alabama, that provides services to approximately 200 hospice patients located in Alabama and Georgia.

"We are very pleased to add Countryside to SolAmor's growing hospice operations. This transaction is Sun's first acquisition since our restructuring was completed in November 2010, and continues our strategy of expanding our hospice business into those areas where we operate skilled nursing centers. With seven existing locations and four additional branches scheduled to open, Countryside is expected to generate approximately $11 million of revenue and to be accretive to both EBITDAR and net income in 2011," said William A. Mathies, chairman and chief executive officer of Sun Healthcare Group, Inc. "With the addition of Countryside, we anticipate an annualized revenue run rate for SolAmor of more than $64 million in 2011," continued Mathies. 

With this transaction, SolAmor expands its hospice services to 10 states serving approximately 1,050 patients daily. "We welcome this dedicated group of caregivers from Countryside, who are committed to the SolAmor hospice philosophy of treating each patient as a member of our own family," said Glen Cavallo, president of SolAmor.

About Sun Healthcare Group, Inc.

Sun Healthcare Group, Inc.'s (NASDAQ: SUNH) subsidiaries provide nursing, rehabilitative and related specialty healthcare services principally to the senior population in the United States. Sun's core business is providing, through its subsidiaries, inpatient services, primarily through 166 skilled nursing centers, 16 combined skilled nursing, assisted and independent living centers, 10 assisted living centers, two independent living centers and eight mental health centers. On a consolidated basis, Sun has annual revenues of $1.9 billion and approximately 30,000 employees in 46 states. At Oct. 1, 2010, SunBridge centers had 23,189 licensed beds located in 25 states, of which 22,407 were available for occupancy. Sun also provides rehabilitation therapy services to affiliated and non-affiliated centers through its SunDance subsidiary, medical staffing services through its CareerStaff Unlimited subsidiary and hospice services through its SolAmor subsidiary.

Forward-looking Statements

Statements made in this release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "hope," "intend," "may" and similar expressions. Forward-looking statements in this release include all statements regarding the expected results of operations, growth opportunities and plans and objectives of management for future operations. Factors that could cause actual results to differ are identified in filings made by the Company with the Securities and Exchange Commission and include changes in Medicare and Medicaid reimbursements; the impact that healthcare reform legislation will have on the Company's business; the ability to maintain the occupancy rates and payor mix at the Company's healthcare centers; potential liability for losses not covered by, or in excess of, insurance; the effects of government regulations and investigations; the ability of the Company to collect its accounts receivable on a timely basis; the significant amount of the Company's indebtedness; covenants in debt agreements that may restrict the Company's activities, including the Company's ability to make acquisitions, incur more indebtedness and refinance indebtedness on favorable terms; the impact of the current economic downturn on the business; increasing labor costs and the shortage of qualified healthcare personnel; and the Company's ability to receive increases in reimbursement rates from government payors to cover increased costs. More information on factors that could affect the Company's business and financial results are included in Sun's filings made with the Securities and Exchange Commission, including its Annual Report on Forms 10-K and Quarterly Reports on Form 10-Q, copies of which are available on Sun's web site, There may be additional risks of which the Company is presently unaware or that it currently deems immaterial.

The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control. Sun cautions investors that any forward-looking statements made by Sun are not guarantees of future performance and are only made as of the date of this release. Sun disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.

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