For Elevance Health's telehealth services, should we prioritize increasing virtual visit availability or improving the quality of each consultation?

Introduction

For Elevance Health's telehealth services, we're facing a critical trade-off between increasing virtual visit availability and improving the quality of each consultation. This decision will significantly impact patient care, operational efficiency, and our competitive position in the telehealth market. I'll analyze this trade-off by examining key metrics, stakeholder impacts, and potential outcomes to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking telehealth demand might be stabilizing post-pandemic. Could you share our current growth rate and market share in telehealth services?

Why it matters: Helps determine if we need to focus on acquisition or retention Expected answer: Moderate growth, 15-20% market share Impact on approach: Higher growth would favor availability, while market leadership might prioritize quality

• Considering our revenue model, I assume we charge per consultation. Is there a significant difference in pricing or reimbursement rates between standard and high-quality consultations?

Why it matters: Influences the financial impact of prioritizing quality over quantity Expected answer: Higher quality consultations have slightly better margins Impact on approach: Significant price difference would lean towards improving quality

• Looking at user segments, are we serving a general population or focusing on specific conditions or demographics?

Why it matters: Different user groups may have varying needs for availability vs. quality Expected answer: Mix of general and specialized care, with a growing chronic care segment Impact on approach: Specialized care might benefit more from quality improvements

• Regarding our technical infrastructure, how scalable is our current platform for increasing virtual visit capacity?

Why it matters: Determines the feasibility and cost of expanding availability Expected answer: Moderately scalable with some investment needed Impact on approach: High scalability would make increasing availability more attractive

• Considering our team structure, do we have separate teams for scheduling/availability and for clinical quality improvement?

Why it matters: Affects our ability to execute on either priority without neglecting the other Expected answer: Partially separated teams with some overlap Impact on approach: Fully separated teams might allow pursuing both priorities simultaneously