FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * ALVIS HARRY R   2. Issuer Name and Ticker or Trading Symbol SUNLINK HEALTH SYSTEMS INC [SSY] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Chief Operating Officer (Last) (First) (Middle) 900 CIRCLE 75 PARKWAY STE. 1120 3. Date of Earliest Transaction (Month/Day/Year) 11/17/2008 (Street) ATLANTA, GA 30339 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 11/18/2008   P   800 A $ 1.1487 82,550 D   Common Stock 11/18/2008   P   4,200 A $ 1.15 86,750 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option

$ 6.57

11/17/2008

D

20,000

(1)

02/17/2010

Common Stock

20,000

(4)

0

D

Employee Stock Option

$ 9.63

11/17/2008

D

17,500

(2)

11/10/2015

Common Stock

17,500

(4)

0

D

Employee Stock Option

$ 8

11/17/2008

D

40,000

(3)

09/23/2017

Common Stock

40,000

(4)

0

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
ALVIS HARRY R 900 CIRCLE 75 PARKWAY STE. 1120 ATLANTA, GA 30339			Chief Operating Officer

Signatures

/s/M. Timothy Elder, pursuant to a power of attorney		11/19/2008
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	6,667 exercisable 2/18/2006; 6,667 exercisable 2/18/2007; and 6,666 exercisable 2/18/2008.
(2)	5,833 exercisable 11/11/2006; 5,833 exercisable 11/11/2007; and 5,834 exercisable 11/11/2008.
(3)	Exercisable in four equal installments of 10,000 shares on 9/24/2008, 9/24/2009, 9/24/2010, and 9/24/2011, respectively.
(4)	These options were cancelled by mutual agreement of the reporting person and SunLink Health Systems, Inc. The reporting person agreed to cancel these options for the right to participate in the 2009 Executive Bonus Plan (the "Plan"). Under the Plan, the reporting person may receive $75,030, $112,545, or $150,060, if certain goals are achieved, based on discretionary criteria that revolve around the objective of increasing shareholder value.

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