Defining the healthcare market--a critical precursor to your strategic plan.

Most hospitals undertake an annual strategic planning process. Medical practices also plan, but less frequently. In fact, sometimes medical practices erroneously depend on a hospital market analysis for their planning. This paper serves as an opportunity to review key concepts in developing an analysis of a “market”. Often a market analysis is a key component of the strategic plan. A detailed market analysis assists in identifying utilization rates, projecting future volume, assessing competitive position, developing an actual marketing plan, and is a vital component when researching potential new services/locations. While considerable time, thought, and effort goes into the analysis of various data components, one key component of the market analysis is often overlooked — defining the actual market. The grouping of counties or zip codes into areas or “markets” is vital in market analysis. Such groupings enable advanced analysis on a rolled up basis. Often hospitals define “My views are fluid, and are subject to change as circumstances change.”