Need Analysis: 1. What need does the product fulfill? fulfill?
The product plays the role of a new-age health technology solution that connects physicians and patients in real-time. Needs of the various stake-holders it fulfills are as follows: a) Patients- No need to wait in long queues for a health check-up. b) Insurance Companies- Saves their costs towards payment to physicians. Opens access to people not covered in their health insurance scheme. Takes care of billing on their behalf. c) Doctors- It enables private practice as all they require is a computer terminal connected to the internet. d) Patients not covered by health insurance- It provides them access to doctors online when previously they had none and saves time. e) Hospitals, Retail Clinics, Pharmacy Chains (New Segments)-An online pla tform to interact with patients. 2. Is the need being currently met? By whom? How? There are quite a few providers in the field of online care. The way in which they are meeting meeting the needs of patients only (barring Cisco) are as follows: Relay-Health Through their HIPAA-Compliant websites, Relay health provide a platform platform for patients to schedule appointments, refer to their health records. However, there is a lag of eight business hours from Relay-Health’s end to cater to their client’s needs. By mid 2009, 50 health-care systems and hospitals were associated with them. Med-fusion They also facilitate patient-physician communication through their virtual virtual office suiteappointment requests, bill payments and interactive questionnaires. They serve more than 28,000 physicians and 1 million patients. Tel-a-Doc They provide patients access to doctors through a call-center model. It’s mainly used by patients when their PCP is unavailable. The number of people associated with Tel-a-Doc is 1.6 million. Cisco-TelePresence They enable online interaction between patients and doctors in real-time through videoconferencing. Apart from servicing patients they were tying up with United health group, a
leading insurer whose network included nearly 600,000 physicians and 5000 hospitals, to create a nation-wide network. 3. How satisfied are the customers with the existing solutions?
Customers here refer to patients as the existing online health-care facilitators service patients only via DTC model. Customers are not satisfied with health care delivery as they have to show up at an emergency room or a similar acute care facility, submit themselves to the schedule of their physician, which could result in weeks of waiting for an office visit. Exhibit 11 shows the average waiting time for appointment with a physician, as of the year 2009. And it shows there is a considerable time lag in getting appointment. And time-savings being the most valued requirement, as shown in Exhibit 5, there is a need for a time-saving (and a cost-effective) alternative. Business Model: 1. Is AmWell's value proposition superior to what competitors/substitutes provide? is it sustainable in the long run? Yes, American Well’s value proposition is superior to what the competitors provide at this moment. The value that they are creating for all the stakeholders is much higher than what the competitors are doing presently. The four major stakeholder’s stand to gain a lot from American Well’s product, which its competitors are currently not providing. a) Physicians- Less infrastructure requirement, work-life balance b) Patients a) Members- Convenience, low cost b) Non-Members- Access to medical care, low cost c) Health Insurance Companies-Low Cost, reputational benefits d) Employers- Low cost
Although there may be severe competition in the future, we believe that it will be sustainable. This is because American well has the first mover advantage as well as the fact that they are continuously innovating to launch new products. Products like Team edition will definitely make it sustainable in the long run.
2. Who are the complimenters? What are their strengths that AmWell can leverage?
The possible complimenters to American well’s products are: a) Health Insurance Companies b) Retail Outlets( Hospitals, Chain of health clinics, pharmacy chains) The strengths that American well can leverage from them are: a) Huge network of physicians
b) Huge network of patients( Access to the database of members)
3. What decisions on part of AmWell could threaten the mutual success of AmWell and complementers?
The decisions such as competitors of American Well which already has a good Brand name start the similar Online care facility then this will affect the progress of American Well and its complementers The next is regarding the source of Finance, as the Amwell depends on the investors, when they stop financing Amwell and concentrate on other core competencies.
4. How does AmWell help the various stakeholders achieve their business goals? Customers: Immediacy, Convenience, Quality, Affordability, Choice, Better Health Outcome, Personalized and eliminating potential elements of shame Doctors: Flexibility, elimination of infrastructure as well as hiring and training, more time for personal work, additional revenue and changes from routine work Insurance Company: Cost Savings, less complications, identify new opportunities, restoration of image with the society Employers: Convenience, Wide range of insurance coverage at lowest possible cost, Faster Access and Early Diagnosis thus eliminate absenteeism at work due to illness at bay and increase production
Context: 1. What demographic shifts favour AmWell?
As of 2009, American Well was concentrating its first launch in Hawaii. Therefore an influx of population (especially working class) in Hawaii will favour the company. Increase in the population (generally migration from other states) of Minnesota, Texas, as well as an increase in military personnel will also favour AmWell provided the PODs (BCBS, Optum Health and TriWest Healthcare Alliance) are able to tap the benefits of the growing population. 2. How does the current state of economy impact AmWell?
Amidst the economic downturn, American Well will have a tough time in tying up with insurance companies (or POD) as these companies themselves will be facing the heat. A certain segment might also be unable to fund their financial obligations American Well. American Well should focus vigorously on DTC model (lower premium/fee) and at the same time minimize their operational costs. 3. What common business practices / laws if amended would have a positive impact on AmWell's business?
The government would play an important role in the positive impact of American Well. Subsidizing the cost of drugs would directly or indirectly benefit the company as more people would be encouraged adopts health care plans (American Well in this case). Subsidizing insurance premiums and prohibiting denial of coverage and denial of claims based on pre-existing conditions will also have a positive impact on American Well. The cost of these provisions could be offset by variety of taxes, fees and cost-saving measures, such as high taxes for high-income brackets, tax penalty for citizens who do not obtain health insurance (unless they are exempt due to low income or other reasons), etc.