Rennova Health Inc (NASDAQ:RNVA) has announced that Epic Reference Labs (ERL), it’s laboratory in West Palm Beach, has secured a preferred provider network agreement, with Community Care Plan (CCP). The company stated that it had signed the agreement on October 1, which would allow ERL to be accessed by over 100,000 members, in South Florida. It should be noted here that CCP is considered to be a Managed Care Organization, which serves as a safety-net Provider Service Network in the state.
The CEO of RNVA, Seamus Lagan, stated that the company had been planning to work with preferred provider networks, in order to have a strong customer base and a predictable flow of revenue. He also expressed his pleasure at the agreement with CCP and claimed that this was a validation of RNVA’s capabilities. Mr. Lagan also stated that this was an indication of their ongoing transition from an out of network service provider, towards having a defined agreement with consumers.
Rennova Health also noted that it had acquired the complete ownership of Genomas Inc. The company recently signed an agreement to acquire 85%, the remaining ownership, of Genomas, at a price of $1.75 million. RNVA made the payment using series F convertible preference shares, while also assuming $800,000 of existing debt. The company had acquired 15% of Genomas earlier in July. The acquisition provides RNVA with access to phyzio-type systems, used in DNA guided management and prescription drugs for mental illness, as well as heart disease and diabetes.
The two entities had already been working closely together, on the launch of several pharmacogenetics tests, performed at Genomas’ labs, using a diagnostic genotyping kit, approved by the FDA. The company stated that Genomas shall continue to operate as a wholly owned subsidiary of RNVA, with its president, Dr. Gualberto Ruano, serving as the medical director of the subsidiary.
Rennova Health Inc (NASDAQ:RNVA) had a trade volume of 6 million and gained 12.73% during the October 1 trading session, to close at $0.164 per share.