Rennova Health will separate its software and diagnostic divisions from its rural hospital operations via an all-stock deal with TPT Global Tech as they look to create a new telehealth subsidiary, the companies announced Friday. Rennova, the struggling West Palm Beach, Fla.-based lab test company that pivoted into the hospital business after insurance carriers cut off most of their payments for its urine toxicology tests, said the new subsidiary “will combine telehealth with EHR like capabilities and facilitate a patient’s immediate access to healthcare.” The deal is expected to be completed in the third quarter. “Rennova has previously disclosed its intention to separate its technology and software divisions. This agreement with TPT finalizes these plans and the technology being contributed to the project by TPT creates an exciting opportunity to revolutionize the way patients access healthcare and continued aftercare,” Rennova CEO Seamus Lagan said in prepared remarks. “We see first-hand the need our rural hospitals have to secure and retain patients.”
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Source: https://www.modernhealthcare.com/finance/rennova-health-spin-software-and-diagnostics-divisions