AMERI

CAN
WELL:
THE
DOCT
Submitted By:
Section- C
OR
Group 7 WILL
E-SEE
Summary:
In this case we are talking about, American well which is an
online health care delivery organization established in 2006.
YOU
NOW
Its founding members were Ido Schoenberg, who served as
CEO of IMDsoft which he founded along with his wife and
Roy Schoenberg, brother of Ido, who was founder of
CareKey. The organization aimed at changing the
traditional healthcare delivery and improve the patient-
physician interaction.

 ANKUR SRIVASTAVA-19A2HP453

 PIYUSH KATRE-19A1HP060

 SHIVKANTH TIWARI-19A3HP658

 AMAN KUMAR JHA-19A3HP660

 RAM DHAR-19A3HP666

 ROHIT JONATHAN YELLAMELLI-19A2HP452

 AAYUSH RAJ-19A1HP069
Ido is the chairman and corporate CEO and Roy is the president and CEO of American Well
Systems.
As quoted by Ido “All health care today is point to point: Doctors and patient need to be at
specific place at specific time in order for the service to take place. We have built a platform
that is many to many; there is no appointment, no specific time and place, but rather care can
be delivered from any place at any time. The American Well market place coordinates this”.
The Company’s vision was to use the internet and telephony to connect physicians and
patient within minutes in real time.
According to the U.S government data U.S healthcare expenditures were estimated to be
around 17.6% of GDP, which provided an added advantage for American Well to become a
key player in the Healthcare service providers. Earlier the type and quantity of care delivered
to the patient depended on several factors like Geographical location and health insurance
coverage, with the advent of American Well the healthcare delivery was made easily
accessible as it came out with a plan to curb the geographical location and insurance coverage
issues by going online and integrating the insurance service with its online healthcare-service
providing platform with great market opportunities in the near future.
Later Ido and Roy believed that American Well had applications beyond Healthcare
industries like legal advice, accounting services and even religious counselling, but were in a
dilemma that it would hamper the company’s initial online care rollout but at the same time
was worried about the competitors snatching these opportunities.

Q1. Do you share the assessment of the founders regarding the potential of Online Care to
revolutionize healthcare delivery?

Ans. As per the data, U.S. health-care expenditures were estimated to top $2.5 trillion in 2009
and were projected to reach $4.3 trillion by 2018 which contributes 17.6% of U.S. GDP. The
prevalence of chronic disease at that time provided booming opportunity for health-care
providers.
Patients were reported searching for online health support and information. According to
eMarketer Digital Intelligence survey in December 2009, 80% of respondents were reported
searching online for health-related information in 2006 and 74% respondents wanted to
communicated with their doctors using e-mail.
The type and quantity of care delivered depended on several factors including health
insurance coverage and geographical location. Patients with health insurance typically had a
PCP who served as a chief contact for health concerns and who referred them to specialist as
needed. Patients without insurance visited to hospital emergency room for main source of
care and were charged heavily. This was true for many who had insurance because of some
limitations of service.
There was utter need of overcoming the waiting period for getting an appointment with
physicians. According to the data “2009 survey of physicians appointment wait time” Merrit
Hawkins and associates the waiting varied from 10 to 60 days in different cities of usa some
of it are as follows:
o Boston 62 days
o Washington dc 30 days
o Miami 8 days
And for getting appointment for specialist (cardiologist dermatologist gynaecologist etc) it
reached maximum of 70 waiting days for few cities
Since from above data we can analyse that there was a potential need of platform that could
bridge the gap between patients and physicians, hence change the concept from point-to-point
to many-to-many. American Well had that similar idea (platform) which could help to do so
and also acquire the unexplored market.

Q2. Which of the new market opportunities do you see as most promising?
Ans. Out of the two stated market opportunities, Delivery network and Expanding services
internationally, the most promising would be the Delivery network chain which includes
Hospitals, Chains of Health Clinics and system of providers(pharmacy). The reason for the
same is stated below:
Delivery networks would bring about economics of cost, better customer service and
increased revenue for American Well’s platform.
Hospitals with online care kiosk would enable the patient to consult a physician without
waiting in long ques. At the same time chain of health clinics would overcome the
geographical location as a barrier and immediate first aid care would be accessible to all.
According to the data given in Exhibit 2 in the case the total health expenditure for hospital
care is estimated to be $718.4 billion and retail health expenditures is $934.3 billion. The
installation of kiosk at hospitals would curb down these costs to an extent, thus providing an
opportunity for American Well to expand its business in hospital care.
Introduction of online care kiosk at pharmacy would solve the problem of patient privacy
which would encourage the customers to buy medicine without any feeling of embarrassment
while speaking out at the counter.
On the other hand, expanding American well internationally would lead to change in its
organization structure and policy to comply with the laws of respective countries. Cost to
company would increase drastically which may not be beneficial for American Well in
present scenario.

Q3. If you were in the shoes of American Well Management, would you pursue any of the
next generation options in 2010 or would you just focus on the core platform with the core
target market?
Ans: We would have just focused on the core platform with the core target market of online
healthcare services the reasons for the same are stated as under:
 Launching team edition (codename of the next generation product) as a natural
extension of American wells current services.
 Team edition brings an added value to its stakeholders and drive company towards its
ultimate goal of being the market leader in providing online care.
 Team edition provides benefits of cost as American well already has acquired R&D
and technology to introduce product in the market.
 A change in direction towards market opportunities like delivery networks and
expanding internationally would require significant market investments and directing
resources from Health insurance market where American well was just starting to
make inroads.
 If American well dives into other markets, its competitors would possibly take chunks
out of its existing market share.
 The diversification of the market and expanding internationally should be done after
they are the market leaders in the core business.

Conclusion:
After an extensive analysis we can see that American well an online care company has
created a marketable idea and revolutionized the health care industry.
Its best course of action to achieve new heights and its organizational goal of being a market
leader, they should focus on its core business and expand its legs into other markets i.e.
diversify its business after gaining a stable market share.