I’ve recieved several emails asking how big the two contracts are that EWLL just recently announced.
In a word, they are VERY BIG.
I dug into the Interent for information on Greenshield so this is information anyone can find on their own–but for your convienience here you go:
It appears the Green Shield contract is supervised by Benefits by Design (Canada) so the two contracts are very much intertwined–which is why they were announced together.
Greenshield is Canada’s only national not-for-profit health and dental specialist, and their services include drug, dental, extended health care, vision, hospital and travel benefits for groups and individuals, as well as administration services.
These are the numbers as of the end of 2016–but I suspect they’ve grown since then.
The company has 7 Region Offices with 858 employees and an impressive 3.3 million plan participants generating $1.96 billion in gross revenue per year. But as we talked about the company has likely grown over the past two years.
In early 2019 Greenshield will commence a paid PHZIO National Pilot Project. If that goes well then PHZIO would likely be rolled out to the entire GSC network.
Once the plan is rolled out completely we can extrapolate some revenue numbers based 3.3 M Plan Participants accessing an average of 8% getting PT treatments each year equates to 264,000 annual PT patients.
Furthermore the average number of PT sessions per patient is 10 treatments at an average of $58.00 for an initial evaluation, and $39.00 per digital treatment, equaling $448.00 per patient in annual PT billing.
If we take $448.00 per patient times 264,000 PT patients that comes to $118,272,000 in potential annual gross PT treatment revenue.
Just to clarify in case you got lost in the commas and zeros that’s over 118 million in gross revenue from ONE CONTRACT.
That’s pretty exciting but it’s even more exciting to
realize all four EWLL principals plus two EWLL salespeople are currently working the Workman’s Compensation conference in Las Vegas as this is being written likely finalizing the details of several more.
It’s a 3 day conference that began yesterday and ends tomorrow–but here’s the kicker–Chairman of the Board Douglas MacLellan told me they are in talks with approximately 25 major Workman’s Comp providers at this conference–and in many cases these are advanced talks, and they are all face-to-face.
Here’s the point–you can see the potential results of just one contract–and the guys at this conference are now nailing down the details of what is likely to be several more.
This is the wave of the future and if you read yesterday’s press release you’ll see that yet another state has approved remote physical therapy for their residents. You can read the whole press release here.
And the amazing thing for us is that EWLL is still the ONLY provider of digital physical therapy in the country–and they are so far ahead it would take years for any other company to catch up.
The stock really took off yesterday (Tuesday) but based on the company’s revenue and profit potential it’s got a long ways to go.
Keep up the good work,