chkconfig scripts are merely meant to launch server applications (daemon processes). So it's rather the launched server software that should do the "application up" testing and looping with this test until the server is stopped. Somehow I have the feeling that you are using the chkconfig concept for something that it wasn't meant for.
You could just as well add your (modified) script as a cronjob, so it would retry it's task in a defined time interval.
Arch Linux