• Telemedicine giant Amwell is reportedly preparing to go public immediately after raising nearly $ 200 million in the face of widespread excitement for telemedicine.
• The 14-year-old supplier confidential filed for an IPO earlier this week and hired Goldman Sachs and Morgan Stanley to lead the business, according to CNBC. The IPO could take place in September, according to CNBC sources.
• An Amwell spokesperson declined to approve or disapprove reports of Healthcare Dive’s IPO, but now would be a good time for the company given the growing demand for virtual care and the removal of regulatory barriers imposed by the COVID-19 Pandemic.
Rumors have been circulating for months that Boston-based Amwell is investigating an IPO as more patients seek home care with poor visual acuity during the pandemic, causing a seismic shift in service delivery.
According to Roy Schoenberg, CEO of Amwell, the company has seen a 1,000% increase in video visits due to COVID-19. In some cases, however, this value is closer to 3,000% to 4,000%.
In May, the provider raised $ 194 million in a Series C funding round to expand its telemedicine offering and increased its total funding to $ 711 million in eight rounds. The main investors are Anthem, Philadelphia-based Jefferson Health, and the Japanese drugmaker Takeda.
Along with changing its name from “American Well” to Amwell in early March, the company rolled out new offerings during the pandemic, including one for medical offices with fewer than 100 doctors, a national COVID response program. 19 and disseminates specific work for COVID.
Its clients include 240 healthcare systems, including giants like the Cleveland Clinic, Intermountain Healthcare, and New York-Presbyterian of Salt Lake City, as well as 55 healthcare programs with 36,000 employers.
Telemedicine providers struggle to keep up with patient demand as more and more healthy people try to identify symptoms and connect with doctors without going to an office or hospital where they are. COVID-19 could spread or possibly infected. The Trump administration has been easing restrictions on telemedicine since March, which has also fueled further growth in the industry.
While treating a flood of patients doesn’t come cheap, digital health practitioners have seen their inventory skyrocket. Shares in rival Teladoc, which went public in 2015, are up nearly 90% since late 2019, while remote monitoring and chronic care management company Livongo has doubled its share price.
Some analysts predict that telemedicine use will decline in the second half of 2020 as the coronavirus weakens, but others argue that the favorable winds could last for at least the next 12 to 18 months until a vaccine becomes widely available is saturate the market.
According to consulting firm McKinsey, up to $ 250 billion in health care spending could be digitized by 2020, which is roughly a fifth of all estimated spending on Medicare, Medicaid, and business practices, offices, and home personal care. By comparison, the total annual revenue of all telemedicine companies in the US is estimated at $ 3 billion prior to the pandemic.