Telehealth company Amwell hit with $330M impairment charge as stocks decline

We all know that telehealth industry is booming ever since the Covid-19 pandemic came into existence because of the simple fact that the patients are not going to have no need for regular checkups just because of a pandemic and neither were the doctors going to stop doing their work. This is the reason why everyone started doing their meetings on Zoom and other platforms before adopting to the telehealth platforms that were already present in the market. One of those telehealth platforms is Amwell, previously known as American Well, and we have some news regarding its financial health right now.

It is reported that Amwell has been hit with an impairment charge which is close to $330M and this is said to be taken by the company as a “goodwill” charge which will be all noncash. Now, if you don’t know about impairment charge then it is the charge that the company and its investors have mutually agreed upon to be done when the company’s stocks keep on going down every quarter. Amwell says that this impairment charge is due to “associated market capitalization compared to the book value of our equity as of quarter end,”

Amwell, in a statement, said “We are fortunate to have a substantial cash position as it provides the resources to fund this temporary period of investing and the flexibility to pursue strategic opportunities that are aligned with our goals,” While the EBIDTA loss for the company is $44.6M this year. Still, it is worth noting that it was even higher last year. Amwell’s CEO Ido Schoenberg says that we want to bring a “unique whole-person one-stop-shop platform that supports the delivery of hybrid healthcare.”

He added that “In February, we completed a full system launch with health partners out of Minnesota. This enterprisewide go-live is integrated with Epic and used by clinical teams across many specialties, and health partners’ clinicians are already conducting as many as 3,000 visits per day,”. He also said that “In a world where a digital-first approach to hybrid care is a certainty, it’s also clear in my discussions with our clients that in the healthcare market, spending always requires rigorous prioritization


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