Conference call notesA pretty good call, CEO was articulate, 4-5 analysts with questions. Nothing major disclosed there, but I did take a few notes:
- Objective to expand out East in terms of owned clinics, and become a national player. Also more EMR/software acquisitions including something "soon" in telemedicine.
- Aim to pay 5x EBITDA for clinics (less for smaller chains, more for larger). High single digit multiple for software.
- Positive EBITDA expected next year
- Mid 30s gross margin expected in Q3.
- Costs have been rising due to building out "shared services" capability, but they'll start to recoup that as they expand. Shared services are services they provide to clinics in addition to EMR, such as billing, HR, scheduling, IT, data security, etc.
- A few more key hires required for IT/data security (I guess they learned their lesson from TIO), but other areas are fully built out.
- These shared services seem to be one of the main areas of focus to get more revenue per clinic.
- Apparently some of EMR providers aren't fully charging their clinics what they're supposed to, so that's another area Well can clean up and increase revenue without increasing prices.
- Preference is to buy clinics that are underutilized, and add doctors, improve scheduling (with software), increase hours, etc. to boost revenue.
- Telemedicine can improve utilization, since doctors can work from home part time, thereby freeing up more space for other doctors at the clinic.
- Telemedicine billing codes are actually higher than in-clinic (more $$).
- Room for ~20% utilization improvement across their current clinics.
- Q1 is the best quarter for clinics in terms of seasonality.
- Oscar itself doesn't reuiqre much investment from Well, because with open source plugins it already matches/exceeds other premium EMR software.
- FD share coujt is 131 million, assuming all convertible notes are excercised.
- GP pay in BC is increaing next year.
- 16 of 19 of their clinics use their EMR service. The rest will later this year.