JELLICO — Rennova Health is wasting little time expanding its footprint in the rural hospital industry.
The parent company of Big South Fork Medical Center in Oneida announced Monday that it has entered into a definitive asset purchase agreement to purchase Jellico Community Hospital from Community Hospital Corporation.
The deal, which is set to close in the first quarter of 2019, pending typical regulatory approvals, will give the West Palm Beach, Fla.-based Rennova ownership of all three of the northern Cumberland Plateau’s hospitals. Earlier this year, Rennova finalized a deal to purchase Jamestown Regional Medical Center from Tennova Health.
Rennova is a firm specializing in medical diagnostics software and equipment. In late 2016, however, the company significantly expanded its presence in the health care industry by starting a rural hospitals division and purchasing the vacant Oneida hospital campus from Mississippi-based Pioneer Health Services. Pioneer, which had acquired the hospital facility from Scott County, was in the throes of bankruptcy at the time and had closed the Oneida facility.
Earlier this year, shortly before marking its one-year anniversary after reopening Scott County Hospital as Big South Fork Medical Center, Rennova announce it had entered into an agreement with Tennova to purchase the Jamestown hospital.
“This third hospital is situated near our Oneida and Jamestown based hospitals and further expands our footprint in the rural hospital sector in keeping with our business strategy,” said Rennova CEO Seamus Lagan.
“We believe having a number of hospitals in the same geographic location creates a number of synergies and efficiencies and we look forward to this acquisition adding to revenue and value in the first quarter of 2019,” Lagan added.
In Jellico Community Hospital, Rennova will acquire a 54-bed, acute-car, nonprofit facility. It will also acquire CarePlus Center in Williamsburg, Ky., an outpatient clinic that offers primary care and a variety of radiological diagnostics, as well as physical therapy and laboratory services.
BSF Medical Center is a 25-bed acute-care facility, and has made application with the state fora status change to a critical-access facility. Jamestown Regional is a 85-bed facility.