American Well Case Study Essay

1977 Words 8 Pages
American Well
Benefits of Online Care for patients, health providers, and health insurance companies
a) Benefits for patients
With Online Care wait times are drastically reduced from days to hours or minutes and patients do not need to travel to the clinic. This service can be accessed at home providing privacy as well as protection from infections that can be contracted from other patients in the waiting area. The service is much cheaper compared to clinic visits. Patients can also instantly seek second opinion. There are no time constraints and PCPs are available on-demand with greater choice. The patients can easily manage and access their medical records and information online. Online care will allow for immediate professional
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Along with that, adhering to HIPAA compliance and avoiding malpractice risks and any type of legal liabilities, privacy and hacking issues are also critical to AW’s success. AW’s success is also dependent on how well it protects its Intellectual property (IP) and keeps off competition. Although the technology is proprietary, competitors may try to develop different software or IT platform that provides a similar service. Competitors like Medfusion and TelaDoc can also decide to move into this space and provide tough competition to AW. There is also a threat from the customer itself becoming a competitor - insurance companies can develop a similar service after using AW’s service. The capital investment is not huge for a financially strong health insurance company. For example, the cost of the technology platform, which is 70 million, is only 2% of WellPoint’s net income of $3300 million.

The American Well business model
a) Value proposition and service offering
AW is offering an innovative and revolutionary way to provide healthcare that is easily accessible anytime and anywhere. The biggest advantages are that it saves time, costs and matches excess supply with excess demand efficiently. There are many health problems which are not an emergency but can’t wait for days either. Online care will help bridge this gap. The service model works well for nonemergency and

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