American Well:

The Doctor Will E-See You Now

Group 6 | Section A

Ankita Katiyar PGP10008 Abhishek Singh PGP10003

Nandeshwar PratikPGP10031 Sidhharth Pal PGP10051

Pooja PGP10035 Suman Sharma PGP10057

Tanya Saxena PGP10059
 Health-Care Delivery in US
• US healthcare expenditure were expected to reach $13,100 by 2018
• There were intense reform debates in public policy circles in 2009
• Chronic diseases were leading causes of disability and deaths
• Healthcare providers bracing for a significant demographic shift expected – by
2030, 20% of the American population will age above 65
Private Sector Payer Public Sector Payer
Funded 53% of health spending Funded 47% of health spending
Included: insurance companies, individuals, Medicare, Medicaid, Department
philanthropic sources of Veterans Affairs, SCHIP
Purchased plans independently or received
through employer (50+ workers | paid 17% for
indiv.| 27% for family)

• Type and quality of care delivered to patients depended on: i) Health insurance
coverage, ii) Geographic Location
• About 17% Americans under age of 65 were without health insurance
• 14% Americans did not see a doctor due to cost concerns : lack of health insurance
or high deductibles .
2
 Information Technology in Healthcare
• Traditionally patients had to either show up at emergency room or wait for weeks for an office visit. Financial and operational
constraints, insufficient access to care, coverage requirements, reimbursement limits, out of pocket expenses, rural constraints,
regional health care constraints were many of the pressing issues
• 74% of wanting to use e-mails as a medium of communication, only 4% was the conversion rate as such service not offered.
• Doctors were reluctant to engage patients via e-mail due to increase in workload, caution around HIPAA compliance and the
service not being covered under insurance, the “e-mail-doc” soon was proven ineffective in solving the problem.
• Tele-Medicine Services (American Well’s competitors)
Company Service and Inclusion
RelayHealth automating the traditional process | 50 healthcare hospitals and systems
Medfusion virtual suit experience for the patients to interact with physicians | over 1 million patient accounts
TelaDoc option for round the clock services| more than 1.6 million members
Cisco TelePresence notch up with a video conferencing setup for tech-based interaction| 600000 physicians, 5000 hospitals

• Nurse Practitioners addressed the problem of PCP shortages in rural areas and engaged in approx. 600 mn. patient visits
• MinuteClinic: provider of walk-in health clinics for nonemergency needs, preventive care and vaccinations
• RediClinic: walk-in, retail based clinicfor routine health issues, vaccinations, tests & screening
• Take Care Clinic: located at Walgreens (chain) and also managed workplace based health services 4
 American Well
• Ido and Roy envisioned CareKey which was first to provide patients with Internet-based personal health
records coupled with set of tools to self-manage certain health issues. By end of 2009, 45 million people were
using CareKey and was sold to TriZetto Group.
• The brothers figured out the gaps which could be bridged with the help of IT and decided to capitalize on the
opportunity of redistribution of medical services through Internet and formed American Well in 2006.
• The system:

 used web-based technologies and telephony

 to bring patients and physicians together in real time
 by linking excess supply with excess demand
 irrespective of it’s geographic location and availability time
• AmericanWell
alsodecided
ruled out limitations
health duecompanies
insurance to economic deprivations
as its of patients
primary target customer due to competitive
advantage of easier access to large pools of patients and doctors.

5
 5C Analysis
• Established in 2006 by Ido and Roy
Schoenberg, both trained physicians • Offline health service
• Health insurance
providers are one of the
• Created on the context of lack of access biggest competitors of companies constitute its
to quality and affordable healthcare American Well primary target
and the ways in which IT can help • • Could serve American Well
Other competitors are Rely
bridge the gap as “aggregators” providing
Health, Medfusion,
easier access to large pool
• Idea was to bring healthcare to Teladoc & Cisco
people's homes and workplaces by Telepresence of patients
using IT to bring patients and doctors • Sponsor online medical
together in real time Company Customers consultations directly or
indirectly

• Doctors, Insurance companies and Competitors • Legal Environment – Online

Hospitals
care service is compatible to
• Doctors ensure that the goal of the HIPAA which addresses privacy
company is achieved by expediting the Context & security risks
consultation process • Technological Environment –
• Insurance Companies bring in the Can be extended to provide
patients to the platform services at homes &
workplaces
• Collaboration with hospitals will
accelerate the launch of Team Edition

3
 SWOT Analysis

STRENGTHS
● First mover advantage in the US market to offer seamless service
● Quilting demand and supply of PCP or specialists and patients through
online care services
● Comparatively reduced cost of consultation than traditional for patients
and insurance companies
● Entry barrier for other players by development of intellectual property
● “Team Edition” is more effective in bringing down the associated legal
barriers Medical licensing issues resolved
● Legal and provider shortage barriers diminished
WEAKNESSES
● Resource constraints for international business
expansion
● Agitation of doctors considering increased workload,
non-reimbursement by insurance companies
● Serving both the insurance and delivery network
markets could create conflicts
● Less brand awareness may pose problem in expansion

OPPORTUNITIES THREATS
● Immense potential in international markets due to legal
● Security and privacy threat for the confidential medical
restrictions on medical practitioners
reports of patients
● Retail clinics could also augment their services by installing Online
● Erosion of monopoly if well-established competitors also
Care kiosks
adopt a similar product
● Online Care kiosk in hospitals
● Pharmacy chains also represented potential customer base
7
 Value Proposition to Stakeholders

Patients Insurance Companies

•Online care technology saves time and money •Cost saving as the amount reimbursed to physician would be
•Provides a choice of doctors with no geographic constraints less as compared to a physical visit

•Offers privacy & eliminates elements of shame •Can tap a new segment by opening doors to “non-members”

•Option of seeking a 2nd opinion immediately after a session •Image benefit from being considered a “profit-making” entity

Physicians American Well

•Doctors can save significantly on the infrastructure costs •Access to a pool of patient records & doctors from insurance companies

•Flexibility to the doctors to work in shifts, on weekends •A whole range of new possibilities in health care sector

•Opportunity to expand in international market & enter various other

•Opportunity for the retired doctors to resume their practice
types of consulting
•Doctors can get patients from different states too
8
 Promising Market Opportunities

1 Insurance 2 Team Edition 3 Delivery Network

It can cater to a large pool
of customers and offer
cost effective solutions to
everyone like doctors,
customers ,employers etc.
It will provide quick referral They could link real time
to a specialist from her PCP. capacity to real time
demand thus increasing
cost efficiencies and
utilizing excess capacity

4 Online consulting 5 Expansion

The online consulting Potential customers in

platform could also be Australia, Germany and UK
used for various other have expressed interest in
services like teaching etc. American Well services as well

9
 American Well’s way ahead..

Establish and market the core product i.e. Online Care Technology
Online Care
Develop & Market secondary Product i.e. Team Edition
Team Edition
Expansion to new segments like hospitals, retail
clinics, pharmacy chains, etc Expansion to new segments
International expansion to Austria, Germany, UK
International Expansion

10
 Calculations

22-07-2020 11
 Recommendations

• American Wells should target all the prospective customers initially. Restricting their services to
only health insurance companies may limit their diversification because of vested interest of large
insurance companies .Exhibit 5 depicts that that more than 50% of prospective consumers were in
favor of online health services
• Team Edition has a vast opportunity and the company should venture into it after the core product
has been accepted by customers in short span of time. Exhibit 11 and exhibit 12 depict how
patients have to abnormally wait for appointments with family physicians and specialists so Team
Edition would surely be liked by the patients
• We would recommend American Wells to go for international expansion after getting success at
home market.

12
Thank You!