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American Well Corp. Previously Double Counted Active Provider Key Metric
Telehealth company overstated key metric 7.8% but says it’s not significant.
November 9, 2022
Telehealth company American Well Corporation (AMWL) overstated a key metric for at least the first half of 2022. The company’s Active Providers metric, according to the company, is an important indicator of the platform’s value as it’s the number of health care professionals who are active on the Amwell platform. The company says the metric is a measure of the platform’s success.
Turns out that success has been overstated.
In its latest quarterly filing, American Well revealed in a footnote that it had double counted certain providers who had conducted patient visits on multiple Amwell platforms and products. The company attributed the discovery to a change in its methodology for calculating Active Providers.
The change, according to American Well, resulted in what it calls an “insignificant decrease” in the number of Active Providers for the previous two periods ended June 30 and March 31, 2022. Rather than 103,500 and 102,0000 Ative Providers originally reported, Amwell disclosed the real counts to be 96,000 and 96,500 for the same periods.
It means Amwell:
— Overstated Active Providers by 7.8% in Q2
— Overstated Active Providers by 5.6% in Q1
We don’t agree the decrease is insignificant.
Notably, the Active Provider count for the affected periods still appears to be overstated in the latest quarterly filing. Also unclear is why the methodology change did not impact periods other than two identified in the footnote.
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