Rennova Health, Inc. (OTC: RNVA), announced that on Friday, July 27th, 2018, that Jamestown Regional Medical Center (JRMC), its second rural hospital in Tennessee, has started receiving payments from Medicare and other payers for services provided.
Rennova Health, a vertically integrated provider of industry-leading diagnostics and supportive software solutions to healthcare providers, had acquired JRMC on June 1st, 2018.
JRMC’s annual net revenues in recent years have been approximately $15 million. Government payers including Medicare and Medicaid have accounted for in excess of 60% of the payor mix.
JRMC provides a 24-hour Emergency Department that has two trauma bays and seven private exam rooms, inpatient and outpatient medical services and a Progressive Care Unit which provides telemetry services.
JRMC had recently received confirmation from the CMS Regional Office (Centers for Medicare & Medicaid Services) that its CHOW process had been completed. This completion allows for the generation of claims to payors for services rendered.
Receipt of the first payments on July 27th had marked an important milestone for Rennova as the expected regular collections going forward are anticipated to end the significant cash requirement to carry the hospital’s monthly costs.
The first payments received are from Medicare and demonstrate the organization of JRMC’s billing process. According to Renova, this is approximately 60% or more of the hospital’s patient base at this time is covered by government payors.
”This is a very significant milestone for our Company,” stated Rennova CEO Seamus Lagan.
“To start and receive payments in this timeframe is testament to the effort and efficiency of our team and will reduce the strain on resources and other parts of our business that was experienced through the change of ownership process. The next milestone is to have a positive and profitable cash flow at this facility and we expect to cross this milestone in the next couple of months.”