eWellness Healthcare Corporation, a provider of telehealth solutions, has signed a five year comprehensive physical therapy services agreement with healthcare plan administrator Endeavor Plus Services (EPS).
EPS is a third-party administrator (TPA) that processes insurance claims or certain aspects of employee benefit plans for small and medium sized companies. EPS projects had approximately 100,000 healthcare members by the beginning of 2018.
According to eWellness, the new agreement is expected to generate initially up to $4.2 million in annual reoccurring gross revenue for the company. This level of sales is anticipated to allow the company to gain cash flow positive operations during the early part of 2018. Additionally, if EPS is able to continue on their projected growth rate over the next 12-18 months that could generate at least 500,000 new members, which in turn could generate at least $100 million in reoccurring gross annual revenue to eWellness.
EPS is projecting to grow rapidly in the small group health insurance market which has annual premiums of over $384 billion per year. "Approximately 84 percent of this market is traditional full insurance," it noted. "EPS is expected to grow rapidly by offering these small employers the ability to self insure through excellent plan design and reinsurance. EWLL is excited to be chosen as their physical therapy gatekeeper as well as wellness program supplier."
It added that EWLL’s comprehensive PT & wellness programs and consulting services are anticipated to provide EPS with new products that will build new sales channels that increase their current health insurance business, and create new revenue sources through the introduction of such products.