Jamestown (Tenn.) Regional Medical Center, an 85-bed facility formerly known as Tennova Healthcare-Jamestown, has started receiving reimbursement from Medicare and other payers after its sale to West Palm Beach, Fla.-based Rennova Health.
Franklin, Tenn.-based Community Health Systems sold the hospital to Rennova on June 1. On July 27, JRMC started receiving reimbursement from payers after CMS confirmed the facility's change of ownership process was complete, according to a news release.
Hospital officials said they anticipate Jamestown Regional, which has seen annual net revenue of about $15 million in recent years, will no longer have to rely on cash on hand to cover monthly costs now that reimbursement has started. Rennova estimates at least 60 percent of the hospital's patient base is covered by Medicare and/or Medicaid.
"This is a very significant milestone for our company," Seamus Lagan CEO of Rennova, said in the release. "To start and receive payments in this time frame 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."
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