Rennova Health Inc (RNVA)

[Deagle]

Rennova CEO Seamus Lagan told Modern Healthcare in an interview that acquiring the hospital to alter lab reimbursements is "absolutely" not his intention in purchasing Tennova Healthcare-Jamestown. He added that he's aware of the such arrangements, but said this is not one of them.

"That is not an area we have any interest in pursuing or looking at," he said. "We see these hospitals as a good little business on their own with increasing the services that are required by the local community and absolutely without the need to get into any complicated or convoluted agreements with far-away companies."

Lagan said he believes Rennova can turn around the hospital's financial performance, and even "make a little profit," by giving the hospital the changes and investments it needs to thrive, including potentially upgrading equipment and providing additional services. CHS focuses more attention on their larger hospitals, not the ones they're divesting, he said. "The focus that's required, the management that's required to make these smaller hospitals run efficiently and work well, they can get a much better return from that same effort being expended on a larger facility," Lagan said.