I concluded a post recently by saying that the big corporate hospices had won another battle, and that it was going to be even harder for the small guy to make it. Guess, I may have overestimated the health of the big hospices. Trinity Hospice, which is a subsidiary of Sunrise Senior Living (NYSE: SRZ), is shutting it’s doors. Here is the “announcement” within their most recent financial report:
In October 2008, the Company determined not to provide any additional funding for ongoing operations to our Trinity subsidiary due to the continued losses experienced by that subsidiary. As a result, the Company expects to write-off the remaining goodwill and other intangible assets related to Trinity of approximately $9.8 million in the fourth quarter of 2008. As a result of this decision to cease funding by the Company, Trinity’s board of directors has decided it will discontinue operations by the end of the year.
Trinity’s website is already gone, so I can’t figure out how many offices Trinity had. I know there are a lot of Trinity Hospices across the nation, but I can’t quite figure out if they were all related. There is a press release from the time Sunrise acquired Trinity that says that Trinity was the eighth largest hospice in the nation and that the purchase price was 68 million dollars.
I guess there is pain all around the hospice industry. I’d love to know if the Medicare Cap, bad business practices, or just plain life was what brought this company to its knees.
If you know more about this, please feel free to leave comments to supplement the limited information I have here.