BOSTON - Amwell (NYSE: AMWL), a digital care company, has partnered with Hello Heart, a preventive heart health firm, to offer cardiovascular care solutions to health plan clients. This collaboration, announced today, integrates Hello Heart's digital program into Amwell's Converge platform, enabling members with heart disease risk factors like high blood pressure and high cholesterol to manage their conditions more effectively.
The United States faces a significant burden from heart disease, the leading cause of death, with treatment costs averaging $12,500 per member annually for health plans. Nearly half of all U.S. adults suffer from high blood pressure, a major risk factor for heart disease. The Hello Heart program aims to address this issue by providing a connected blood pressure monitor and a mobile app for personalized coaching and health metric tracking.
Members of Amwell's health plan clients can now access the Hello Heart solution alongside other virtual care services, such as primary care, urgent care, and behavioral health, through their existing Amwell-powered offerings. This integration is expected to facilitate better health outcomes and reduce costs for large populations at risk of cardiovascular conditions.
Dr. Edo Paz of Hello Heart expressed confidence in the partnership's potential to drive significant health improvements for many more individuals. Amwell's CEO, Dr. Ido Schoenberg, echoed this sentiment, emphasizing the value of adding Hello Heart to their portfolio as a means to support healthcare organizations in preventing or reversing the effects of heart disease.
The partnership will be showcased at the upcoming HLTH conference from October 20-23 in Las Vegas, where both companies will demonstrate their integrated solutions.
Hello Heart, established in 2013, has been recognized as a leader in preventive heart health and is trusted by numerous Fortune 500 companies and national health plans. Amwell, with nearly two decades of experience, supports digital care delivery for over 50 health plans, representing more than 100 million covered lives.
This initiative reflects a growing trend towards integrated digital health solutions designed to improve patient outcomes and streamline care delivery. The information is based on a press release statement.
In other recent news, American Well Corp has reported a favorable second-quarter 2024 revenue of $63 million, surpassing consensus estimates. This positive financial outcome prompted TD Cowen and Needham to maintain a hold rating on the company's shares, with TD Cowen increasing the price target for American Well to $12.00, up from the previous $2.00. The company's adjusted EBITDA loss of $35 million was more favorable than the anticipated $40 million loss, leading to an improved EBITDA forecast for 2024.
American Well's collaboration with the Defense Health Agency (DHA) is progressing as planned, with services being rolled out at five initial sites. The full enterprise deployment of these services is expected in December 2024. The company's partnership with the DHA marks a significant shift towards enabling hybrid care models, broadening the scope of services American Well offers.
In terms of company news, American Well has amended the employment agreement with Kathy Weiler, the Chief Commercial & Growth Officer. The agreement provides her with various benefits should she leave her position without a "Good Reason" on or after June 1, 2025. Leadership changes have also taken place with Co-founder Roy Schoenberg transitioning to Executive Vice Chairman of the company's Board of Directors, and Ido Schoenberg assuming the role of sole Chief Executive Officer. These are some of the recent developments within the company.
InvestingPro Insights
As Amwell (NYSE: AMWL) embarks on this strategic partnership with Hello Heart, investors may find value in examining the company's current financial position. According to InvestingPro data, Amwell's market capitalization stands at $144.21 million, reflecting its position in the digital healthcare space.
InvestingPro Tips reveal that Amwell holds more cash than debt on its balance sheet, which could provide financial flexibility as it expands its service offerings through partnerships like the one with Hello Heart. This strong cash position is particularly important given that the company is quickly burning through cash, a common characteristic of growth-focused companies in the digital health sector.
The company's revenue for the last twelve months as of Q2 2023 was $254.91 million, with a revenue growth of 0.55% in Q2 2023. While this growth is modest, it's worth noting in the context of the company's strategic moves to enhance its service portfolio.
Investors should be aware that analysts do not anticipate the company to be profitable this year, as indicated by another InvestingPro Tip. This aligns with the company's current focus on expansion and market penetration rather than immediate profitability.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights that could be valuable for understanding Amwell's financial health and growth prospects. There are 5 more InvestingPro Tips available for Amwell, providing a more comprehensive view of the company's financial situation and market position.
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