- WELL's clinic recruitment, absorption and acquisition program
has demonstrated substantial growth and capital efficiency having
added two Canadian clinics in Q4-2023 generating approximately
$28 million in annualized revenues
for total consideration of less than $400,000 and are expected to positively
contribute to EBITDA in 2024. WELL now operates 167 clinics in 98
facilities across Canada
- WELL has initiated an enterprise-wide cost optimization
initiative, with a focus on improving cost efficiency and improving
operating cashflow. It is expected that the Company will
leverage a multitude of strategies including tech enablement,
robotic process automation, and artificial intelligence for further
cost optimization across its enterprise.
- OceanMD continues its successful growth journey and has started
its work with the PHSA in British
Columbia. WELL continues to expect the full realization of
the previously announced $38.5
million contract and is making progress on pursuing new
public sector opportunities in its business development
pipeline.
VANCOUVER, BC and TORONTO, Jan. 16,
2024 /PRNewswire/ - WELL Health Technologies
Corp. (TSX: WELL) (OTCQX: WHTCF) ("WELL" or the
"Company"), a digital healthcare company focused on
positively impacting health outcomes by leveraging technology to
empower healthcare practitioners and their patients globally, is
pleased to announce multiple updates to its business.
Hamed Shahbazi, Founder and CEO
of WELL, commented, "2023 was a landmark year for WELL, marked by
significant growth, record revenues and EBITDA but perhaps what
encourages us the most is how doctors and clinic owners across the
country are proactively approaching WELL for support on managing
their clinics. This has caused an unprecedented growth in the
inbound interest in our owned and operated patient care business
leading to an acceleration in our organic growth. Simply put, our
growth is no longer just limited to buying clinics or developing
greenfield sites, we are now attracting and recruiting entire
clinics with a full roster of patients and providers for nominal
consideration. We refer to this as our clinic absorption program.
This is because care providers are increasingly trusting WELL and
looking to be 'absorbed' by WELL such that they be supported with
professional management that allows them focus on delivering the
best care possible."
Mr. Shahbazi continued, "We are coupling this shift of rapid
growth due to reduced physician and clinic acquisition costs with
an emphasis on streamlining and cost optimizing our operations so
that we can scale profitably and demonstrate the operating leverage
that exists in our business. We believe it is critical for us to do
this so that we can meet the industry demand and be able to
continue to support our community of patients and providers."
WELL's clinic recruitment and absorption program has
demonstrated substantial growth and capital efficiency. In Q4
alone, WELL has added two Canadian clinics generating approximately
$28 million in annualized revenues
for total consideration of less than $400,000. These clinics are expected to
positively contribute to EBITDA in 2024. This includes the addition
of the Manitoba Clinic, the largest privately operated clinic in
the Province of Manitoba. Overall,
WELL's clinic recruitment and absorption program has now resulted
in five clinics joining WELL's network in 2023 and generating more
than $33 million in annualized
revenues for total consideration of less than $400,000. All of which are expected to positively
contribute to EBITDA in 2024. WELL's current pipeline of clinic
'absorption' candidates includes 13 clinics which are currently
under LOI. WELL's regular non-absorption M&A pipeline of
clinics and targets currently includes approximately 30 clinics and
targets under LOI.
Eva Fong, CFO of WELL, commented,
"WELL hasn't just demonstrated an ability to acquire or absorb
clinics, we've also been very focused on integrating and delivering
Revenue and EBITDA growth. From inception through to
2022,1 our acquired clinics underwent WELL's clinic
transformation program which resulted in average revenue growth of
20% and EBITDA growth by an average of 31%. We look forward to
updating our stakeholders on the results of our clinic
transformation on our 2023 and 2024 cohorts."
Manitoba's Largest Clinic Joins the WELL
Network
On December 1, 2023, WELL
completed the absorption of the Manitoba Clinic. The addition of
this well-known and trusted clinic enhances WELL's network with a
range of specialized services including family practice, internal
medicine, obstetrics/gynecology, ophthalmology, and more. With over
40 skilled physicians, Manitoba Clinic broadens the depth and
breadth of WELL's medical expertise and extends its reach to over
750,000 residents in Winnipeg, one
of Canada's largest cities. This
is part of WELL's clinic recruitment and absorption program, which
has made significant contributions to WELL's organic growth and
reflects WELL's discipline regarding capital allocation.
The incorporation of Manitoba Clinic into the portfolio marks
WELL's first entry into Manitoba,
representing a significant milestone as the fifth province in
Canada where WELL has established
a physical clinical presence. This crucial step aligns with WELL's
vision of creating a nationwide network of physical and virtual
healthcare services. By integrating Manitoba Clinic, WELL not only
expands its geographical footprint but also lays a foundation for
further clinical expansion within the province. With this
acquisition, WELL now operates 167 clinics in 98 facilities across
Canada, significantly advancing
towards its goal of a widespread, integrated healthcare system
serving Canadians coast to coast.
WELL Advances Profitability with
Enterprise-Wide Cost Optimization Initiative
WELL has embarked on an enterprise-wide cost optimization
initiative, aimed at enhancing operational efficiency and
increasing operating cash flow. This strategic move is key to
WELL's long-term vision, reflecting a commitment to not only
improve financial performance but also to establish a foundation
for sustained growth and market leadership.
Central to this strategy, WELL has made significant strides in
technology integration, particularly with AI. Earlier this year,
WELL established an AI Center of Excellence internally to help
expand the use of AI across functions throughout the enterprise.
The Company has recently procured several leading-edge AI
solutions, some of which are slated for deployment in early 2024.
These advancements are expected to increase operational efficiency,
provide improved support and care to our valued customers, and
enhance the organization's productivity velocity. In tandem with
these technological enhancements, WELL is also focusing on the
centralization of key vendor relationships. This includes a major
initiative in data center hosting, which is anticipated to
significantly refine WELL's hosting economics. By optimizing these
vendor relationships, WELL is aiming to achieve more favorable cost
structures and service efficiencies, contributing to improved
scalability, security, and reduced operational costs.
Through these initiatives, WELL is reinforcing its commitment to
leveraging technology and strategic operational restructuring. The
focus on AI integration and vendor relationship centralization is a
testament to WELL's pursuit of excellence in healthcare efficiency
and customer service. These efforts are poised to drive enhanced
profitability and assert WELL's position as a leader in the
healthcare industry, ready to address the evolving challenges of
the healthcare sector.
WELL's Continued Focus on Public
Sector Success
WELL continues to focus on opportunities to grow its public
sector business. OceanMD, a wholly owned subsidiary of WELL,
continues to demonstrate significant growth overall and through its
ongoing project with the Provincial Health Services Authority
(PHSA) in British Columbia. The
start of this collaboration signals a significant expansion in
OceanMD's role within the Canadian healthcare sector. Central to
this collaboration's success is the Ocean Platform, whose
effectiveness and innovation are exemplified through services like
eReferrals, eConsults, and eOrders. These offerings are set to
significantly enhance healthcare efficiency in the province. The
collaboration with the BC PHSA represents a significant milestone
for OceanMD, further establishing its role in advancing digital
healthcare solutions across Canada, and WELL remains optimistic about
realizing the full $38.5 million
contract. WELL has recently participated in new public
service-oriented business development opportunities and looks
forward to supporting its public service federal and provincial
partners in 2024 and beyond.
Footnotes:
|
1.
|
WELL's clinic
acquisitions that closed in 2023 were excluded from this figure as
they were recently enrolled in WELL's clinic transformation
program
|
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies
Corp.
WELL's mission is to tech-enable healthcare providers. We do
this by developing the best technologies, services, and support
available, which ensures healthcare providers are empowered to
positively impact patient outcomes. WELL's comprehensive healthcare
and digital platform includes extensive front and back-office
management software applications that help physicians run and
secure their practices. WELL's solutions enable more than 33,000
healthcare providers between the US and Canada and power the largest owned and
operated healthcare ecosystem in Canada with more than 165 clinics supporting
primary care, specialized care, and diagnostic services. In
the United States WELL's solutions
are focused on specialized markets such as the gastrointestinal
market, women's health, primary care, mental health, revenue cycle
management, and practitioner recruiting. WELL is publicly traded on
the Toronto Stock Exchange under the symbol "WELL" and on the OTC
Exchange under the symbol "WHTCF". To learn more about the Company,
please visit: www.well.company.
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SOURCE WELL Health Technologies Corp.