Reopening Jamestown (Tenn.) Regional Medical Center is central to the financial success of Rennova Health, but is nearly impossible given its current financial state, the hospital chain's CEO told News10.
Rennova Health CEO Seamus Lagan said that Rennova's business model depends on the shared resources and finances of at least three hospitals. It owns two other hospitals in Tennessee. In this regard, there is a serious financial incentive to reopen the Jamestown facility, but Rennova doesn't have the millions of dollars needed to do so, Mr. Lagan said.
In a June financial filing, the health system said it was more than $49 million in debt, and was spending about $2 for every $1 in revenue it generated.
In the last two years, employees at Rennova's hospitals said the company has routinely missed payroll and allowed supplies to dwindle to dangerous levels. Eventually, Rennova closed the Jamestown facility after regulators pulled its Medicare contract.
Despite the financial struggles, Mr. Lagan said he is committed to making Rennova financially solvent.
"It's not because we're stubborn or stupid. We do see opportunity for this business to succeed," Mr. Langan told News10. "There have been times that it would have been easier to throw the towel in."
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