Rennova Health's Big South Fork Medical Center Receives Certification Number From CMS
WEST PALM BEACH, FL -- (Marketwired) -- 10/26/17 -- Rennova Health, Inc. (OTCQB: RNVA) (OTCQB: RNVAW) ("Rennova" or the "Company"), a vertically integrated provider of industry-leading diagnostics and supportive software solutions to healthcare providers, which opened its first rural hospital in Oneida Tennessee on August 8, 2017, announces that following the successful completion of a survey by the Centers for Medicare & Medicaid Services (CMS), Rennova's Big South Fork Medical Center (BSFMC) has received its CMS Certification Number. Receipt of this number is necessary to bill CMS for services and receive payment, and follows the previously announced award of full accreditation for BSFMC for a three-year term effective as of October 11, 2017. Receipt of this number enables BSFMC to complete negotiations of contracts with private payers.
"We are thrilled to receive our CMS number nearly two months sooner than we had anticipated," said Seamus Lagan, CEO of Rennova Health. "In preparation for full accreditation and the CMS billing number, we were required to open the hospital and absorb facility operating costs as well as the expenses of treating patients. We will now be able to submit claims going forward and will be reimbursed retroactively. Approximately 60% of the services provided in BSFMC are payable by the federal government and a CMS number is required to receive these payments and secure credentialing with other insurers."
Big South Fork Medical Center opened under Rennova Health's ownership on August 8, 2017 with services that include a 24/7 emergency department along with radiology services that include X-ray, CT scan and ultrasound. Other available services include a laboratory, respiratory therapy, physical therapy, a medical/surgical unit and swing beds.
As previously announced, the opening of this hospital signifies a new strategic direction that the Company believes will ensure predictable and reliable payment for needed services in the healthcare sector. BSFMC had unaudited annual revenues of approximately $12 million and a normalized EBITDA of approximately $1.3 million for fiscal year 2015, the last full year of the hospital's operation. Rennova continues to believe that operations at BSFMC since reopening provides a strong proxy that revenue can be built back to, and exceed, prior levels of approximately $1 million per month.
Tony Taylor, CEO of Big South Forks Medical Center, said, "Receipt of the CMS number was the final step toward maintaining a robust hospital option for the people in and around Oneida, Tennessee. As a 25-bed rural hospital, the opening and continued operations of BSFMC are a vital community resource. We look forward to now increasing the services we offer at our hospital."
About Rennova Health, Inc.
Rennova provides industry-leading diagnostics and supportive software solutions to healthcare providers, delivering an efficient, effective patient experience and superior clinical outcomes. Through an ever-expanding group of strategic brands that work in unison to empower customers, we are creating the next generation of healthcare. For more information, please visit www.rennovahealth.com.
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company's most recent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Source: Rennova Health, Inc.
Released October 26, 2017