To grow in today's competitive marketplace, planners need to move beyond traditional measures. Namely, organizations should incorporate share of wallet, the portion of a patients' health care spending captured, into their planning efforts.
Organizations typically have been limited in how they approach measuring share of wallet—but new data is opening up new opportunities.
Measure share of wallet with commercial, longitudinal claims data
In the past, you might have measured share of wallet with longitudinal Medicare claims data. While this data can be helpful, it's limited to individuals over 65, for whom loyalty is a fairly sure bet. Or, you might have approached this measure using several proxies, such as share of attributed patient spend or next-step conversion analysis.
Now, organizations should consider using commercial, longitudinal claims data to measure share of wallet. This data provides the comprehensive lens needed to fully pursue growth opportunities—namely, by measuring patient loyalty both up- and down-stream from a procedure.
Uncover hidden opportunity with share of wallet
To illustrate, let's take an example from the oncology service line. For breast cancer patients, planners often prioritize growing breast cancer surgeries in their market because these procedures are considered the majority of spend.
However, if you include the services beyond the procedure, including radiation therapy, chemotherapy, and imaging, to name a few examples, the available total market for breast cancer is much larger than characterized using the original procedural view. This is the share of wallet view that longitudinal claims data can uniquely provide.
Knowing that there are avenues to growth beyond traditional assumptions can better guide your planning department and lead to better business decisions. With this more complete view in breast cancer, for instance, you may consider seeking downstream growth opportunities in the outpatient oncology space rather than solely in the inpatient surgery market.
Guide next steps with longitudinal claims data
Longitudinal claims data allows you to dig into downstream services. In the case of breast cancer surgery opportunity, longitudinal claims analysis answers several important questions:
- After seeing you for their breast cancer surgery, are patients going to other facilities for radiation therapy or chemotherapy?
- Are they traveling to distant providers for these services?