Can a 20% reduction in Rx costs increase your company’s EBITDA and value?
Your current healthcare spend is PEPY.
A 20% reduction in healthcare spend amounts to in annual health plan savings.
This annual health plan savings is equivalent to your company increasing its annual revenue by an additional based on a profit margin.
This 20% reduction in healthcare spend would increase your EBITDA by .
If your company valuation is based on a 10x multiple of EBITDA, then a increase in EBITDA would increase the value of your company by .
In summary, a 20% reduction in healthcare spend will increase the value of your company from to .