Rennova Health Announces That Big South Fork Medical Center Has Received Its First Payments for Services Provided
WEST PALM BEACH, FL -- (Marketwired) -- 12/04/17 -- 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, announces that on Friday, December 1, 2017, Big South Fork Medical Center ("BSFMC") started receiving payments from private insurers for services provided since its opening on August 8, 2017.
BSFMC opened under Rennova's ownership on August 8, 2017 with services that include a 24/7 emergency department and radiology services including X-ray, CT scan, ultrasound, nuclear medicine and MRI. Other available services include a laboratory, respiratory therapy, physical therapy, a medical/surgical unit and swing beds.
As previously announced, in October BSFMC received its Certification Number from the Centers for Medicare & Medicaid Services ("CMS") enabling the generation of claims to payors for services rendered. Receipt of the first payments on Friday marks an important milestone for Rennova, and the anticipated regular collections going forward are expected to end the significant cash requirement to carry the hospital's monthly costs. Initial payments received are from private insurance payers and demonstrate the function of BSFMC's billing process, which Rennova believes will soon result in payments from federal payors. Rennova estimates that approximately 60% of the hospital's patient base at this time is covered by government payors.
"We are delighted to cross this milestone and look forward to receipt of our first payments from federal payors in the immediate future," said Seamus Lagan, CEO of Rennova. "This hospital signifies a new direction that we believe will ensure predictable and reliable payment for needed services, and is a business model we believe we can expand through the acquisitions of additional operating hospitals in the future."
BSFMC had unaudited annual revenues of approximately $12 million and a normalized EBITDA of approximately $1.3 million for fiscal 2015, the last full year of the hospital's operation. Rennova believes the hospital's operations since opening in October provide a strong indication it can rebuild these revenues back to, and in excess of, the levels achieved in 2015, of approximately $1 million per month.
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.
Sebastien Sainsbury, 561-666-9818
LHA Investor Relations
Kim Golodetz, 212-838-3777
Bruce Voss, 310-691-7100
Source: Rennova Health, Inc.
Released December 4, 2017