Rennova CEO seeks more money to run hospitals

The CEO of Rennova Health said the West Palm Beach, Fla.-based health system is still recovering from the recent closure of one of its hospitals and is seeking additional financial assistance to operate its remaining facilities, according to NBC affiliate 10 News.

Rennova Health CEO Seamus Lagan made the remarks in a response to an inquiry by Sen. Marsha Blackburn, R-Tenn. Ms. Blackburn sought information on whether the health system had enough capital to support its hospitals and if it remained in compliance with CMS.

In his response, Mr. Lagan said the closure of Jamestown (Tenn.) Regional Medical Center in June 2019 posed a major setback for the system, creating a "significant disruption" to its business strategy.

CMS terminated its provider agreement with Jamestown Regional on June 12, 2019, and the hospital abruptly shut down the next day. Rennova's other hospitals, Big South Fork Medical Center in Oneida, Tenn., and Jellico (Tenn.) Medical Center, are also struggling. Current and former employees have reported payroll and staffing issues, according to 10 News.

Still, Mr. Lagan said capital may be coming to Rennova in the near future: "To be very clear, I cannot guarantee that we will succeed and I am not representing that we have any definitive agreement about to close, but we are in discussions with a number of parties and remain hopeful that we can successfully close an adequate funding arrangement in the near future to secure the future success of these hospitals," he said.

Read more here.

More articles on healthcare finance:
Bankrupt California health system lays off 920 employees
Trump budget proposal to cut Medicaid, CDC funding: 5 notes
The rural hospital closure crisis: 10 things to know

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Content

Featured Webinars

Featured Whitepapers