American Well: The DTC Decision Case Solution & Answer

American Well: The DTC Decision Case Solution

Retail Clinics:

The first retail clinic was opened in 2000 and then it increased in the number and over 1450 retail clinics were established throughout the U.S. Retail clinics were located in retail stores such as Wal-Mart and other supermarkets,they were considered as the new healthcare providers. The retail clinics were providing walk-in medical facility and the patients didn’t require to take and an appointment to visit the retail clinics and were managed by either the nurse or physician’s assistants.The retail clinics were subjected to treat the minor illness or injuries of patients and were providing their valuable services every day. The retail clinics were providing their service at low prices and almost 50% of Americans had visited retail clinics.


It is a technological innovation in which the medical information is being changed from one site to another in order to provide greater care for the patient health. The Telehealth can be provided through videoconferencing and patient portals etc.However, there three major companies in U.S. that are operating Telehealth care service such as Teledoc (provides access to physicians in a call center model), MDLive (offers registered patients the ability to consult with the physicians through email), and Imminent Developments (doctor on demand) .

1.     American Well as an early mover in the nascent field of Telehealth.

American Well was considered as the early mover in the growing field of Telehealth, which facilitates the remote clinical interactions. Ido founded iMDsoft, which offered an efficient system in order to monitor the seriously ill patients in the hospitals. iMDsoft has facilitated nurses and the doctors by several automated healthcare processes and it has facilitated decision-making by reducing the cost of healthcare processes. Ido and Roy established American Well in 2006 and developed an online Telehealth platform that connects patients and physicians in real time.Both the founders intended to allow patients to consult with the doctors by providing them high level of convenience and greater medical care. Telehealth was new and unconventional technology that many people didn’t know about how to use it.

Moreover, American Well connected the patients with the doctors through online video conference, phone, video chat, and secure email. In addition, through the well-developed system, the physicians were able to access the patient’s records and it lets patients to manage the information regarding their treatment.

Due to being an early mover, the company had a difficult time in convincing the patients and physicians to use this entirely new concept. Furthermore, it was difficult to determine that whether the patients would be willing to pay for this new approach to healthcare.  However, the company pursued B2B strategy, which was a strong selling point for insurers to attract the employers,

Gap between adoption by health plans and utilization by end-users

The number of people who access the online care of American Well was not so high. This is due to the reason that there was long time lag between the health plans and the utilization by the end users. This means that the decision by the health plan to use the technology and when it provided it to the members was a slow process. In addition, the number of online physician’s consultation was low as well due to which, the management was concerned about the challenges that rose from such difficulties. The gap between the health plans and the utilization was also categorized by the demand and supply. The demand of the American Well online solutions was affected by several reasons……………………..

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