Is This The Turning Point For Rennova Health Inc (NASDAQ:RNVA)?

It has been a while since we last looked at Rennova Health Inc (NASDAQ:RNVA) and the company has struggled across the period. At the time of our previous coverage, Rennova went for around $0.39 a share.This was already substantially down on the $2.85 recorded just a couple of months earlier, at the end of February.At its most recent close, Rennova shares trade for around $0.17 apiece – a 94% depreciation across a little more than a six-month period. RNVA Daily ChartThe last month or so, however, has seen the company start to turn around from an operational perspective and we believe it can only be a matter of time before its share price rebalances to reflect the disparity.Here is what we are thinking.This is a healthcare stock that has gone through a few different iterations over the last few years but that is now, primarily, a health facility owner/operator. Way back at the start of the year we pointed to the company's acquisition of a healthcare facility in Scott County, Tennessee as a situation to keep an eye on as it unfolded. The facility was generating around $12 million in annual revenues as recently as 2015, but then went bankrupt and Rennova picked it up in January with the intention of getting things moving again.On August 8, the facility reopened.These sorts of situations can be tough to gauge from an impact perspective in terms of shareholder value, but the uniqueness of this one allows us to take a look at it from a community perspective and it looks like Rennova is actually doing good work at the site.Here's an article detailing the reopening.And a quote, taken from the article, by local Pastor Steve Hodges:

“We’re just very thankful that these folks have put this all together and worked so hard to make it all happen.”

Here's the Facebook page for the facility.The company ran a naming competition through the above linked to Facebook profile (a result of which was the Big South Fork Medical Center name that you can see on the sign outside the facility on the Facebook page and in the above article) and there are hundreds of comments supporting the reopening from the local community. We also think it's worth noting that, during its first month of operation, the facility treated more than a thousand people and had 45 people stay overnight.That's substantial demand for a freshly opened facility in a small community.The point we're trying to make here is that this is an active healthcare facility and one that looks like it could quickly and easily get back to the circa $1 million dollars in monthly revenues that it was generating less than two years ago.Consider this against Rennova's current $3.4 million market capitalization and it's easy to see where the upside potential comes from going forward.There is a reverse split set for this Friday which should help the company maintain its NASDAQ listing but might attract some near-term short pressure, so keep that in mind heading into an exposure.With that said, however, the final step in the process of getting this facility reopened and generating income for the company was 2-day accreditation survey conducted by DNV as required by CMS, and it completed at the end of last week. Near-term, therefore, and on the back of this survey, the company should pick up the Medicare number that is needed to secure payment from Medicare and Medicaid. Approximately 60% of the services provided in the hospital are payable by federal payers and this number is required to receive payments and get credentialed with other insurers. The receipt of it, then, is a big deal, and one that we see as a potential near-term catalyst that could easily spark the above-discussed overarching longer-term turnaround in Rennova's fortunes.Check out our previous coverage of this one here. We will be updating our subscribers as soon as we know more. For the latest updates on RNVA, sign up below!Image courtesy of XXX via FlickrDisclosure: We have no position in RNVA and have not been compensated for this article.