Rennova Health Inc (RNVA)

[jmoney360]

Outlook

Rural healthcare facilities provide a much-needed service to their local communities. Furthermore, owning a number of facilities in the same geographic location will create numerous efficiencies in management, purchasing and staffing and will enable the provision of additional, specialized and more valuable services that are needed by rural communities but cannot be sustained by standalone facilities. We remain confident that this is a sustainable model we can continue to grow through acquisition and development.

https://myrtlerecoverycenters.com/

In the second quarter of 2022, we formed a subsidiary, Myrtle Recovery Centers, Inc., to pursue opportunities in the behavioral sector initially in our core, rural markets. We intend to focus on leveraging our existing physical locations and corporate and regional infrastructure to offer behavioral services including, but not limited to, substance abuse treatment. Services will be provided on either an inpatient, residential basis or an outpatient basis. The Company is finalizing its plans for these initiatives, which are subject to many factors, including licensure and the hiring of clinical and operational staff. The Company intends to initially offer substance abuse services at its Big South Fork Medical Center campus. The Company expects the facility to be open and operating in the second quarter of 2023 although there is no assurance that the Company will proceed with its plans.

Market Demand

In determining their business model and diversification strategy, it is clear that Rennova Health, Inc. is well positioned to meet not only the needs of its communities but also the evolving demands of the healthcare industry.

According to the American Hospital Association, nearly 20% of Americans live in rural areas and depend on their hospitals as important – and often only – sources of care in their communities. Meanwhile, The U.S. behavioral health market size was valued at USD 76.44 billion in 2021 and is projected to grow from USD 79.69 billion in 2022 to USD 105.14 billion by 2029, according to Fortune Business Insights.

For Rennova, the proven demand for improved access to rural healthcare, as well as the increasing need for behavioral health services, adds both strength and opportunity to their business strategy, representing significant potential for investors and shareholders.