American Well (AMWL) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic focus and government partnerships

• Shifted focus over the past two years to government and domestic payer opportunities, leveraging a five-year relationship with the DHA and expanding to the VA, each covering about 10 million members.

• Transitioning from partner-led to direct government contracts, with relationship-building and contracting underway and expectations to announce a long-term direct contract in the coming weeks.

• VA selected after a year-long diligence process, aiming to finalize contracts before year-end, with competition based on platform scope, optionality, and pricing.

• Demonstrated technical capability and security compliance, building a robust, government-specific platform requiring significant investment and organizational change.

• Behavioral health solution was unexpectedly removed from DHA offerings, but there is intent to reintroduce it and expand services to more beneficiaries.

Commercial market and payer engagement

• Nearly half of payers are seeking to change virtual care relationships due to low engagement and unmet ROI expectations, presenting new opportunities.

• Payers are increasingly focused on consumer experience and care coordination, seeking comprehensive, white-labeled digital solutions.

• The platform has evolved from virtual urgent care to include virtual primary care and third-party solutions, with renewed interest from payers.

• SaaS platform powers both government and commercial solutions, offering flexibility to provide technology, clinical services, or both.

• Competitive differentiation centers on security, scalability, and the ability to deliver integrated care journeys.

Organizational transformation and financial outlook

• Underwent significant restructuring, narrowing focus to two main channels, resulting in improved financial stability and renewed team confidence.

• Aggressively hiring in value-creating areas after prior workforce reductions, with management emphasizing discipline and alignment.

• SaaS transition increases business visibility and reliability, enabling better forecasting and investment planning.

• Market opportunity estimated in the hundreds of millions over several years, targeting a return to low-single-digit growth.

• Margin improvement driven by disciplined investment, focus on durable growth, and leveraging technology and AI for efficiency.