Should One Medical ( Clinics/Outpatient Services) prioritize expanding its network of physical clinics or investing in telemedicine capabilities to improve accessibility?

Introduction

The trade-off we're examining today is whether One Medical should prioritize expanding its network of physical clinics or invest in telemedicine capabilities to improve accessibility. This decision is crucial for One Medical's growth strategy and its ability to provide comprehensive healthcare services to its patients. I'll analyze this trade-off by considering the business context, user impact, technical feasibility, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking One Medical's current revenue model might heavily influence this decision. Could you share how the revenue is split between in-person visits and telemedicine services?

Why it matters: Helps understand the financial implications of each option. Expected answer: 70% in-person, 30% telemedicine. Impact on approach: A higher percentage from in-person visits might favor clinic expansion.

• User Impact: Based on patient demographics, I'm assuming there's a mix of tech-savvy and traditional patients. What's the current utilization rate of telemedicine services among our patient base?

Why it matters: Indicates patient readiness for telemedicine adoption. Expected answer: 40% of patients have used telemedicine at least once. Impact on approach: Lower utilization might suggest a need for patient education alongside telemedicine investment.

• Technical Feasibility: Considering the rapid advancements in telemedicine, I'm curious about our current technical capabilities. How robust is our existing telemedicine infrastructure?

Why it matters: Determines the level of investment needed for telemedicine expansion. Expected answer: Basic video consultation capabilities, but lacking advanced features. Impact on approach: A less developed infrastructure might require significant investment, affecting the trade-off decision.

• Resource Allocation: Given that both options require substantial resources, I'm wondering about our current capacity. What's our available budget and team size for this initiative?

Why it matters: Helps determine the feasibility of pursuing both options simultaneously or the need to choose one. Expected answer: $50 million budget, team of 50 people. Impact on approach: Limited resources might necessitate a phased approach or clear prioritization.

• Timeline: Considering market dynamics, I'm thinking about the urgency of this decision. Is there a specific timeline we're working with for implementation?

Why it matters: Influences the pace of decision-making and implementation strategy. Expected answer: Goal to implement within 18 months. Impact on approach: A shorter timeline might favor telemedicine due to potentially faster deployment.