Why Hybrid Healthcare Company American Well's Shares Are Gaining Today

American Well Corporation AMWL and Leidos Holdings, Inc LDOS have recently won a next-generation contract to provide a hybrid care technology platform designed to power the "Digital First" transformation of the U.S. Military Health System (MHS).

Under the deal, the Leidos Partnership for Defense Health (LPDH) is set to provide the Amwell Converge platform, a hybrid care enablement solution.

If all options are exercised, the task order has a 22-month period of performance with a total value of up to $180 million to the LPDH.

Amwell and LPDH will enable the U.S. Defense Health Agency to leverage the benefits of hybrid care, improve access to primary and behavioral health care, and ultimately improve outcomes for the MHS community. This platform will replace the existing Military Health System (MHS) Video Connect solution.

The DHA's Digital First initiative introduces fresh capabilities and enhancements to MHS GENESIS, an advanced electronic health record (EHR) and healthcare system solution that serves as a cornerstone for military and Veteran healthcare initiatives.

"Digital First addresses DHA's goal of better outcomes, new processes, innovation and increased standardization based on evidence," said Jason McCarthy, Leidos senior vice president, Military and Veterans Health Solutions.

The program will start at five initial sites, followed by a phased enterprise roll-out. 

"Through our world class platform Converge, Amwell is already enabling hybrid care across the commercial marketplace. With this agreement, we are pleased to offer our unique capabilities and help improve access to quality care for the MHS community of users," said Ido Schoenberg, M.D., chairman and CEO of Amwell.

Price Action: AMWL shares are trading higher by 11.26% to $1.05 in the premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.