I believe they said on the call that each patient would bring in $115/mo. So if this practice has 500 patients that could be enrolled (stab in the dark), that would be $690k in annual revenues.
At some point, I thought it was said that the revenue split would be 50/50 w WWDC. Maybe I'm wrong here, but let's use that for discussion purposes.
So that's $345k in annual revs for NGH. At 70% EBITDA, that's approximately $250k in cash flow.
Seems paltry. But this is a small example. If they keep adding practices of this size and larger, it becomes significant.
If we reach Sunjay's 3500-5000 ST count, that's a margin contribution of $1.7MM-$2.4MM/yr. And that is largely a recurring revenue stream that can be added to.
If they gain a reputation in the industry, 3500-5000 could become a much larger number in a hurry.
At some point, I thought it was said that the revenue split would be 50/50 w WWDC. Maybe I'm wrong here, but let's use that for discussion purposes.
So that's $345k in annual revs for NGH. At 70% EBITDA, that's approximately $250k in cash flow.
Seems paltry. But this is a small example. If they keep adding practices of this size and larger, it becomes significant.
If we reach Sunjay's 3500-5000 ST count, that's a margin contribution of $1.7MM-$2.4MM/yr. And that is largely a recurring revenue stream that can be added to.
If they gain a reputation in the industry, 3500-5000 could become a much larger number in a hurry.
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