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Amwell
Flash Insights 2020
Author
Adam Cherrington
Author
Sam Eaquinto
Current Time Inside Cache Tag Helper: 6/4/2023 9:03:24 AM and Model.reportId = 1838
In August of 2020, Google Cloud announced plans to invest $100 million into Amwell, forming a strategic partnership with plans to scale the Amwell telehealth platform. Following this investment, Amwell made their public debut on the New York Stock Exchange in September. This KLAS Flash Insights report will explore Amwell customers’ reactions to these events and perceptions about the future impact.Early Perceptions of Google Investment Are Favorable
70% of interviewed clients said their perception of Amwell is more favorable now as a result of Google’s investment. The other 30% are reserving judgement, saying it is too early to tell. No respondents report this event has hurt their perception of Amwell. In general, customers feel the investment adds some legitimacy to Amwell and boosts their confidence that telehealth is here to stay. Several are hoping this move will help Amwell meet customers’ needs. One executive said, “The investment is phenomenal because it opens a door. The more doors that are open, the more information can be exchanged, and that is really important. Google is not investing in Amwell’s work; Google is investing in the product’s capabilities, and that allows for the exchange of information.”
Mixed Reactions to PHI Data Stored in the Cloud, But Concern Is Evident
Two-thirds of respondents are at least somewhat concerned about potentially storing their PHI data in the cloud with Google. A telehealth manager noted, ”Right now, we are very conservative in our environment. We have an affiliation, so our legal and compliance folks are hardcore. The vendor would have to prove beyond a shadow of a doubt that things are secure for us to consider storing PHI data in the cloud.” Others shared a growing comfort with the idea of data in the cloud, bolstered by past positive experiences. A VP said, “We use another cloud product for some things, and frankly, I think the cloud is the most seamless way to store data. As long as our company is holding Amwell accountable and Amwell is holding Google accountable, the cloud should be secure. That is where the data storage market is going regardless.”
Clients Uncertain but Hopeful That IPO Will Lead to Positive Results
While a number of interviewed customers are unsure how the IPO will change their perception of Amwell, most respondents are hopeful Amwell will continue making the right choices to serve their client base. “Amwell going public is going to change some dynamics, politics, and relationships,” said one manager. “Amwell self-admittedly has been learning. Going public will put Amwell in a position to sink or swim. I hope Amwell swims. The marketplace is so competitive now, and Amwell is making the right moves, but they are either going to become rock stars or struggle because there are other players out there that are champing at the bit.” The one customer who expressed a less favorable perception from the IPO said, ”I haven’t heard that Amwell is going public. I thought they were going to continue to be owned by venture capitalists. History shows that companies that are managed by their own founders and are taken public decrease in value” (physician).
Additional Customer Insights
“We are hoping that the Google investment will make Amwell a much better vendor because they haven’t been a great vendor for us. Amwell has had a much better approach in the last few months. We have to have a process going forward that is completely easy for patients. There can’t be any hurdles. We don’t want any age group to have a better experience than another.” —CMIO
“I recently read about Google Cloud’s recent investment, and that is pretty exciting. It is a little early to tell, but when a big player like Google goes into healthcare and has resources, I make the assumption that things are going to be positive. For at least five years now, we have started seeing Google, Amazon, and other big companies tune into healthcare, and that has been interesting.” —Manager
“I would hate for Amwell to be something as big as Google because I like Amwell. If they can keep the same customer satisfaction as they grow, that will be great, but that is hard to do once a company gets to a certain size.” —Director
“I would say there has been no change in perception because of the company going public. I think that is fantastic, really. Going public means the company is going on the stock market. If I had known that COVID-19 was coming, I would have invested some money into telehealth companies, so it makes sense for the company to go public. That is probably more favorable. I don’t think telehealth is going away. It is here to stay as long as we can get the same coverage as in-person visits. If I can get paid for telehealth visits with both commercial payers as well as Medicare, then telehealth is definitely here to stay. Telehealth is just another point of access.” —Director
Designer
Madison Moniz
Project Manager
Joshua Jensen
This material is copyrighted. Any organization gaining unauthorized access to this report will be liable to compensate KLAS for the full retail price. Please see the KLAS DATA USE POLICY for information regarding use of this report. © 2023 KLAS Research, LLC. All Rights Reserved. NOTE: Performance scores may change significantly when including newly interviewed provider organizations, especially when added to a smaller sample size like in emerging markets with a small number of live clients. The findings presented are not meant to be conclusive data for an entire client base.