BOSTON – Amwell (NYSE: AMWL), a digital healthcare company, has partnered with Hello Heart, a heart disease prevention company, to offer heart care solutions to health plan customers. This partnership, announced today, integrates the Hello Heart digital program into Amwell's Converge, enabling members at risk of heart disease such as high blood pressure and high cholesterol to effectively manage their conditions.
The United States faces the highest burden of heart disease, the leading cause of death, with medical costs of up to $12,500 per member per year for health systems. About half of all US adults suffer from high blood pressure, a major risk factor for heart disease. The Hello Heart app aims to address this issue by providing connected blood pressure monitoring and a mobile app for personal training and health metric tracking.
Amwell health plan client members can now access the Hello Heart solution alongside other virtual care services, such as primary care, urgent care, and behavioral health, through their existing Awell-powered offerings. This combination is expected to facilitate better health outcomes and reduce costs for many people at risk of heart conditions.
Dr. Edo Paz of Hello Heart expressed confidence in the partnership's ability to improve the quality of life for many more people. The CEO of Amwell, Dr. Ido Schoenberg, echoed this view, emphasizing the importance of adding Hello Heart to their portfolio as a way to support health 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 showcase integrated solutions.
Hello Heart, founded in 2013, is recognized as a leader in preventive heart health and is trusted by many Fortune 500 companies and national health plans. Amwell, with nearly two decades of experience, supports digital care delivery in more than 50 health plans, representing more than 100 million covered lives.
The move reflects a growing trend toward integrated digital health solutions designed to improve patient outcomes and streamline care delivery. The information is based on a press release.
In other recent news, American Well Corp reported a positive profit for the second quarter of 2024 of $63 million, beating consensus estimates. This positive financial result prompted TD Cowen and Needham to maintain a hold rating on the company's shares, while TD Cowen raised its price target on American Well to $12.00, from $2.00 previously. The company's adjusted EBITDA loss of $35 million was better than the expected loss of $40 million, leading to an improved EBITDA forecast for 2024.
American Well's collaboration with the Defense Health Agency (DHA) continues as planned, with services being rolled out to the first five locations. Full commercial deployment of these services is expected in December 2024. The company's partnership with DHA marks a major shift in enabling hybrid care models, expanding the range of services offered by American Well.
In corporate news, American Well has amended the employment agreement with Kathy Weiler, Chief Commercial & Growth Officer. The agreement provides him with various benefits if he leaves his position without “Good Reason” on or after June 1, 2025. Leadership changes have also occurred as co-founder Roy Schoenberg transitions to Senior Vice Chairman of the company's Board of Directors, and Ido Schoenberg takes on the role of sole Chief Executive Officer. These are some of the latest developments within the company.
InvestingPro Insights
As Amwell (NYSE: AMWL) begins this strategic partnership with Hello Heart, investors can benefit from examining the company's current financial position. According to InvestingPro data, Amwell's market capitalization reaches $144.21 million, reflecting its position in the digital healthcare space.
InvestingPro Tips reveals that Amwell has more cash than debt on its balance sheet, which could provide financial flexibility as it expands its service offerings through partnerships like this one with Hello Heart. This strong cash position is especially important given that the company is quickly burning through cash, a common feature of companies focused on growth in the digital health sector.
The company's revenue for the last twelve months from Q2 2023 was $254.91 million, with revenue growth of 0.55% in Q2 2023. Although this growth is small, it is important to note the context of the company's strategic moves to improve its service portfolio.
Investors should note that analysts do not expect the company to be profitable this year, as indicated by another InvestingPro Tip. This is in line with the company's current focus on expansion and market penetration rather than rapid profitability.
For those interested in in-depth analysis, InvestingPro offers additional tips and insights that can be helpful in understanding Amwell's financial health and growth prospects. There are 5 other InvestingPro tips available for Amwell, which provide a comprehensive view of the company's financial position and market conditions.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
