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Healthcare Market Analysis: Understanding Market Share Data

Healthcare market analysis graph

In recent years, healthcare market disrupters have increased their activity and deepened their presence. While not all disrupters are negative, healthcare market analysis significantly changes healthcare operations. Understanding disrupters' prime targets, service strengths, technology integration and local market dynamics is crucial.

Leveraging healthcare market data and hospital market share analysis is essential for identifying competitive threats and opportunities and allows healthcare organizations to adapt and thrive amidst these disruptions.

Actionable Data for Targeted Results

With access to healthcare market analysis and advanced forecasting capabilities, healthcare organizations can make better-informed decisions with previous trends and outcomes. Here’s how data-driven insights can be leveraged to improve efficiency, enhance patient care and optimize resource allocation.

  • Identify Growth Opportunities: Spot potential merger opportunities and understand outmigration to support strategic growth.
  • Support Certificate of Need (CON) Process: Strengthen CON applications with data-driven insights.
  • Patient Flow Analysis: Identify patient flow patterns to pinpoint leakage points and enhance retention strategies.

Three Key Data Strategies for Strategic Planning

Here are three ways to use your analytics for strategic planning.  

1. Claims data

Claims data can bridge short- and long-term strategic goals, driving revenue into facilities faster. Benefits include:

  • Improved quality of care: Identify areas for quality enhancement.
  • Patient experience enhancement: Customize services to meet patient needs.
  • Resource allocation: Optimize resource allocation based on data-driven insights.
  • Reach organization success: Support your healthcare organization's long-term goals.

2. Service line data

Understanding service line strengths and weaknesses is essential for strategic planning. Service line data can help you:

  • Assess market position: Understand your health system’s market position based on historical use, demographic data and user-defined specifications.
  • Combat market disrupters: Gain insights to compete effectively against disrupters like big tech and retail.

3. Hard intel data

Incorporating “hard intelligence” data from diverse sources is vital for a comprehensive strategic plan. Examples include claims, demographics and social determinants of health.

  • Adjust to workforce challenges: Address issues like workforce shortages and high turnover rates.
  • Competitive edge: Gain a deeper understanding of market dynamics to stay competitive.

Combating healthcare market disrupters: Understand your disrupter

Healthcare disrupters are gaining insights into patient needs, developing innovative care models and enhancing customer experiences. Here are three ways to better understand your disruptor:

  • Know your competition: Evaluate and be aware of the capabilities of disrupters, such as big tech, payors, retail chains and new medical groups.
  • Know the threats they represent: Understand the strategies disrupters use to influence patient care and customer experience. Big tech data can predict patient needs, home-based resources steer patients away from traditional care settings, retail offers low-acuity convenience care and more medical groups have begun to offer concierge care.
  • Know if they’re in your market: Identify disrupters' presence in your market to tailor strategies effectively. Sg2 data shows that payviders, payers and providers combined, are the largest disrupters in New York City while investor-backed medical groups have increased in the state’s other urban areas. However, in rural areas, additional disrupters have developed.

Understand Your Market

Based on your organization's size, you can strategically align with hospital market share dynamics and leverage technology, partnerships and data analytics for growth.

  • Align better with patients: Address patient leakage issues to retain customers effectively.
  • Align differently with physicians: Offer partnership options that solve long-standing problems with providers.
  • Align clearly with VBC: Embrace value-based care pathways to promote practice transformation and facilitate physician engagement.

2024 Healthcare Challenges and Trends

We’re already halfway through 2024. The healthcare sector continues to feel the impact of emerging technologies, rapid sector growth and labor shortages — much like in January.

With little to no reported changes, the intensifying challenges McKinsey and Becker’s Hospital Review reported on seem to hold weight as we progress through the end of quarter two. In terms of the healthcare landscape, it’s important to note the following trends and how they affect the system at large:

1. Technology advancements aren’t enough to solve the problem of supply and demand.

As reported by Becker’s, advancements in Artificial Intelligence (AI), automation and Electronic Health Records (EHR) have helped to close important care gaps. In addition, virtual care programs and remote patient monitoring have eased clinician and administrative efforts.

To further solidify this, McKinsey found positive projected growth in technology-focused healthcare segments, reporting, “In 2023, we observed an initial recovery in the HST market, supported by lower HST wage pressure and continued adoption of technology by payers and health systems searching for ways to become more efficient (for example, through automation and outsourcing).

Both publications agreed that more doctor and provider solutions are needed to keep up with accelerating value-based care models. However, what solutions and vendors are selected will depend heavily on payers and health systems’ search forf ways to become more efficient.

2. Several healthcare sectors are experiencing rapid growth.

McKinsey notes that the healthcare industry has adapted to address the demanding conditions in 2023, further positioning itself to return to historical average profit margins. They’ve seen improvement efforts to restore the market that include:

  • EBITDA recovery transformation efforts;
  • Value-based care (VBC) model changes and updates; and
  • Medicare Advantage changes.

With these initiatives combined, McKinsey predicts that “profit pools for individual and Medicare duals, physician offices and healthcare services and technology are estimated to grow the fastest.”

3. Labor shortages are worsening, especially for providers.

The healthcare labor market has yet to recover. Unlike previous years, the “worsening numbers problem” (as Becker refers to it) doesn’t solely refer to nurses, technicians, advanced practice providers (APPs) and therapists. Instead, the following factors are leading to a growing physician shortage:

  • growing demand for doctors;
  • increase in doctors retiring; and
  • intensifying care demand for aging populations.

Becker reports that by 2034, the US could experience a shortage between 37,800 and 124,000 primary care and specialist physicians. This could significantly impact payment structures and CMS model development/advancement.

4. Health equity remains a priority for CMS.

CMS has made significant strides to provide patients with the highest level of health. To ensure fair and just medical opportunities, policies, programs, and systems have been reimagined within a health equity framework, honing in on community needs. These efforts have challenged healthcare providers and organizations to go beyond their day-to-day priorities, ensuring entire communities are cared for equally.

These trends underscore the complexity of the healthcare landscape, requiring multifaceted solutions that address workforce shortages, payer dynamics, technology integration and value-based care adoption. As providers navigate these challenges, data-driven strategies and innovative approaches will be crucial to improving healthcare delivery and patient outcomes in 2024 and beyond.

Why DataGen and Sg2 MarketEdge

Strategic planning in healthcare organizations requires robust data analytics to make informed decisions. With DataGen's partnership with Sg2 MarketEdge, healthcare providers can access powerful market analyses that drive ROI, growth and high-quality care.

Let us be your data hub for strategic planning and optimization. Discover how DataGen can help navigate the complex healthcare landscape, leverage advanced analytics and provide industry expertise for comprehensive healthcare market data. Reach out to us today for a free consultation.


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