Should Cohere Health prioritize expanding its prior authorization platform's coverage to more specialties or focus on deepening features for existing specialties?

Introduction

The trade-off question at hand is whether Cohere Health should prioritize expanding its prior authorization platform's coverage to more specialties or focus on deepening features for existing specialties. This scenario involves balancing growth through expansion versus enhancing value for current users. I'll analyze this trade-off by examining the product, stakeholders, metrics, and potential outcomes to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Cohere Health's prior authorization platform is established but not yet comprehensive. Could you provide more context on our current market position and the number of specialties we currently cover?

Why it matters: Helps gauge the potential impact of expansion vs. deepening Expected answer: Mid-market position, covering 5-7 key specialties Impact on approach: Would influence the balance between growth and consolidation strategies

• Business Context: Based on our revenue model, I'm thinking specialty expansion might drive top-line growth. How does our pricing structure work across specialties, and are there any financial incentives tied to specialty coverage?

Why it matters: Aligns solution with revenue goals and business model Expected answer: Per-specialty pricing with volume discounts Impact on approach: Would affect the financial modeling of expansion vs. deepening

• User Impact: Considering user behavior, I'm curious about utilization rates across existing specialties. Can you share insights on which specialties see the highest engagement and where we're seeing gaps or feature requests?

Why it matters: Identifies areas of high impact for feature deepening Expected answer: Varied utilization, with some specialties underserved Impact on approach: Would guide prioritization of deepening efforts

• Technical Feasibility: Given our current architecture, I'm wondering about the scalability of adding new specialties versus enhancing existing ones. What's our technical team's assessment of the effort involved in each direction?

Why it matters: Ensures alignment with technical capabilities and resources Expected answer: Expansion requires more upfront work, deepening is incremental Impact on approach: Would influence timeline and resource allocation

• Resource Allocation: Thinking about our team structure, how are our product and engineering resources currently distributed between expansion and feature development?

Why it matters: Helps understand current focus and potential for reallocation Expected answer: 60% on maintenance, 30% on new features, 10% on expansion Impact on approach: Would inform feasibility of shifting focus without hiring