JELLICO, Tenn. — Rennova Health announced Tuesday that it has entered into a new purchase agreement to acquire Jellico Community Hospital.
The company, which recently acquired its second hospital in Jamestown, Tenn. on June 1, 2018, will also purchase CarePlus Center in Williamsburg, Ky., an outpatient clinic offering primary care, diagnostic imaging and laboratory services, according to a release.
“We are pleased to have secured a new agreement to complete this acquisition. The addition of this hospital is expected to initially add in excess of $12 million of collectable revenue per annum to Rennova,” said Seamus Lagan, CEO of Rennova. “We are confident that owning a third hospital in a close geographic proximity to our other two Tennessee based hospitals offers a number of synergies and efficiencies for the provision of services and management and look forward to providing an excellent and complete service to the local community.”
The release said the transaction is expected to close in the first quarter of 2019, subject to customary regulatory approvals and closing conditions.
Once the Jellico hospital purchase goes through, Rennova will own three East Tennessee hospitals. The other two are Big South Fork Medical Center in Oneida and Jamestown Regional Medical Center.
“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 said in November.
Jellico Community Hospital is a fully operational 54-bed acute care facility that offers comprehensive services, including diagnostic imaging, radiology, surgery (general, gynecological and vascular), nuclear medicine, wound care and hyperbaric medicine, intensive care, emergency care, and physical therapy.
The hospital stopped offering OB services on Dec. 9.
The purchase comes after rumors had circulated for months that the hospital would close.
Jellico Community Hospital is accredited by the Center for Improvement in Healthcare Quality and the lab within the hospital is accredited by the Joint Commission and is committed to high standards of excellence.
The CarePlus Center offers sophisticated testing capabilities and compassionate care, all in a modern, patient-friendly, environment. Services include Diagnostic Imaging Services, X-ray, Mammography, Bone Densitometry, Computed Tomography (CT), Ultrasound, Physical Therapy and Laboratory Services on a walk-in basis.