American Well Case Study

1. Online care has high potential to revolutionize healthcare as it has benefits for all key players in the industry:

Patients | Providers | Payers(Insurance companies) |

Avoid waiting in the hospital for long hours and fix an appointment at their convenient timings. Saving time is equivalent to saving money | Young Doctors - who prefer flexible work timings | Cost Savings - $3.36/patient/month. If a Payer had 10k patients a month, it could save them $0.35M/month= $4M a year |

Easy access for elders and people in rural access without compromising quality | Retired Physicians - who can work from home | Predict health condition of patients and suggest them preventive measures thereby avoiding Claims – Indirect cost savings |

Cheaper option for uninsured members | Physicians willing to make extra money from free time | Increase in customer base through Brand awareness |

Varied options of Physicians to make an informed choice based on ratings | | |

Employers, who pay for Insurance cards of their employees, benefit from higher productivity and employee satisfaction.

Since all key players have attractive benefits from this model, online care companies have high potential growth opportunity.

2. Positives in ‘Team Edition’:

* Reduction in cycle time for Patients in terms of visits and follow-up from months to minutes

* Overcome geographical license barriers for Physicians, who were not allowed to practice outside their State; Allows Patients to choose from best Physicians across the country

Negatives in ‘Team Edition’:

* Uncertainty in the rollout and may cause delay in adoption of online care for Payers

Pros outweigh Cons:

* With required technology already in place, American Well will be able to stand out from their competitors – and create a Core-competency (for the near future) as the positives outweigh negatives. With increase in employee strength, AW should manage to roll out in stages. They can send a team of experts to...