Rennova Health Inc. (NASDAQ:RNVA)
Rennova Health Inc. (NASDAQ:RNVA) shares fell 20.2% after the company announced its Big South Medical Center had been granted a three-year certificate of accreditation by the Center for Medicare and Medicaid Services. According to the Chief Executive officer, Seamus Lagan, the certification paves way for the company to start receiving payments for services rendered.
The certification and opening of the Big South Medical Center signify a new direction to Rennova Health Inc. (NASDAQ:RNVA) and is expected to lead to a reliable revenue stream. The hospital had unaudited annual revenues of $12 million and EBITDA OF $1.3 million in 2015.
Rennova has been a shadow of itself in the stock market. The stock is down by more than 90% for the year after dropping from $44 a share to current $0.98 trading level.
Rennova Health Inc. (NASDAQ:RNVA) is an integrated provider of diagnostic and supportive software solutions through its medical centers. Approximately 60% of the services that the company provides are payable through federal payers.
Some of the services offered by Big South Fork Medical Center include 24/7 emergency services as well as radiology services and X-ray CT scan and ultrasound. Rennova remains optimistic of being able to rebuild Big South Medical Center revenues to levels achieved in 2015, based on the hospital first month of operations.
“Receiving our Medicare number is the final hurdle that will enable us to collect payment for services provided. We look forward to the continued success and growth of this hospital and remain confident that this is an excellent business model to create value for our shareholders,” said CEO Seamus Lagan.
Cigna Suit Win
Separately, Rennova Health Inc. (NASDAQ:RNVA) has won an appeal in an Eleventh Circuit Court of Appeals in a long-running CIGNA Lawsuit. The company’s subsidiaries Bio health Medical Laboratory and PB Laboratories had filed a lawsuit against CIGNA in 2015 accusing the company of failing to pay for laboratories services offered.
A U.S District Court dismissed the laboratory’s claims for lack of standing. The subsidiaries appealed the ruling to the Eleventh Circuit Court of Appeals which on its part found the companies have the standing to raise claims.
“This is an exciting development for us and allows us to push forward in our pursuit of the total amount of our original claims,” said Mr. Lagan.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $RNVA and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.