American Well is an online care company that allows patients to be consulted by their physicians online without the long waiting hours in the hospital or scheduling months in advance. The idea arose when the co-founders Ido and Roy saw potential in internet and communications industry and decided to act upon it. American well analyzed the medical industry and found that the lead time between patients getting the care they needed and the time to get to that care was too large, as well as most patients tended to be concerned about the insurance costs and how expensive it was to go see a doctor. They began American well as an online care service to facilitate the process and lower the overall costs for the patients as well as making the doctors life easier. By adding connectivity between the doctors and their patients they were able to give advice and consultation online without the need to see them in person, allowing the doctor to see patients with more urgent needs in their office, making the hospital more efficient. .
Their analysis of how customers perceived value in the medical centers indicates that most patients were, as stated before, reluctant to go because of the very long waiting list, another factor that affected the patients choice was the fact that their insurance was not always covering up their costs. To address this issue, American Well contacted several insurance companies to get work out and set up plans that can suit the patients that are using Americans Well's services. The market success of the company depended on their compatibility with the HIPAA which was enacted in the year 1996 to buff up internet security and reduce the risk of online users, ensuring that the customer's information would not be stolen or altered, especially when it came to medical care. By sticking to this the company was able to increase the value perceived by the clients and further increasing their value chain by adding specialized agencies from which clients were able to pay their medical bills.
