eWELLNESS HEALTHCARE Corp (OTCMKTS:EWLL) is a penny play that has grabbed hold of the attention of traders during the stock’s recent bounce. EWLL shares have been basing over the past several months – holding support effectively — and recently broke out to the upside. That action has been spurred along by EWILL’s recent announcement that it has added the self-insured employer marketplace into its marketing strategy and is actively engaged in business discussions with multiple providers in the administrative services only (ASO) segment of the insurance industry, where EWLL would become the exclusive gatekeeper & provider of physical therapy services.
According to the release, ASO contracts are a big part of health insurers’ business, representing billions of dollars in annual revenue. “ASO plans are also becoming a preferred option for smaller and larger employers alike, in part because of the Patient Protection and Affordable Care Act. As more employers explore the advantages of self-insurance and ASO contracts, insurers know they have to compete to retain or add that business. That means they have to find innovative ways-including wellness programs, accountable-care networks, hospital bill audits and direct contracting with providers in order to appeal to employers and help them reduce costs and improve care.”
eWELLNESS HEALTHCARE Corp (OTCMKTS:EWLL) trumpets itself as a company that develops a telemedicine platform for providing Distance Monitored Physical Therapy programs to pre-diabetic, cardiac, and health-challenged patients through contracted physician practices and healthcare systems.
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According to company materials, “eWellness Healthcare Corporation (OTCQB : EWLL) is the first physical therapy telemedicine company to offer insurance reimbursable real-time distance monitored treatments. Our business model is to license our PHZIO (“PHZIO”) platform to any physical therapy (“PT”) clinic in the U.S. and or have large-scale employers use our PHZIO platform as a fully PT monitored corporate wellness program. The Company’s PHZIO home physical therapy exercise platform has been designed to disrupt the $30 billion physical therapy and the $8 billion corporate wellness industries. PHZIO re-defines the way physical therapy can be delivered. PHZIO is the first real-time remote monitored 1-to-many physical therapy platform for home use. Due to the real-time patient monitoring feature, the PHZIO platform is insurance reimbursable by payers such as: Anthem Blue Cross and Blue Shield.”
As noted above, EWLL is an emerging player in the administrative services only (ASO) insurance space. This is an arrangement in which an organization funds its own employee benefit plan (think of a pension plan or health insurance program). But the specific administrative services elements to managing that plan are outsourced to another organization. So, the admin side is hired out, while the organization maintains the responsibility to pay all claims out itself.
The popularity of this option of late is essentially a reaction to the issues that have arisen as the Affordable Care Act (commonly known as “Obamacare”) is absorbed by the economy. Congress’s troubles getting together a satisfactory alternative to the ACA in their “repeal and replace” mission actually bodes well for companies in the ASO space.
Shares of EWLL have been in high gear of late, curling up through the dime level and breaking above the stock’s 2017 range highs.
In all, recent action has seen more than 160% piled on for shareholders of the name during the trailing week, but that move comes in the context of a larger bearish trend. This is emblematic of the stock. EWLL has a track record that includes a number of dramatic bounces. In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed nearly 120% over what the stock has registered over the longer term.
At this time, carrying a capital value in the market of $18.15M, EWLL has virtually no reported cash on the books, which compares with virtually no total current liabilities. The company is pre-revenue at this point. We will update the story again soon as developments transpire. For continuing coverage on shares of $EWLL stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $EWLL, either long or short, and we have not been compensated for this article.