Four Steps on How to Use Community Data to Plan for Success | DMA

From guesswork to smart decisions 

In today’s competitive healthcare environment, leveraging granular data is no longer an option — it’s a fundamental requirement for sustainable growth, operational efficiency and market leadership. For healthcare planners, the era of intuition-based decisions has been replaced by the imperative of evidence-based strategy. 

Imagine a ship captain navigating the open ocean. In the past, they relied on the stars — a method that required clear skies. The advent of the compass was a game-changer, allowing the captain to plot a course when the sky cannot be seen. Today, a ship captain uses advanced GPS, radar and weather data to chart the most precise and efficient course. 

This how-to guide written by me and my DataGen Market Analytics (DMA) team will explain how these data are used in a step-by-step process of proactive planning, enabling facilities to provide the right care, in the right place, for the right people. 

Step one: Understanding the data 

Before any strategic planning can begin, leaders must gather the right data to provide a comprehensive picture of a community’s healthcare ecosystem. 

Patient demographic data: The "who" and "where" 

Patient demographic data refer to the statistical characteristics of a patient population. These data paint a detailed portrait of the people receiving care from a specific area, helping to answer fundamental questions about who they are, the services they use and where they receive care. In short, patient demographic data help a healthcare facility understand its patient population. Examples include: 

• ZIP code/county of origin: Knowing where patients come from to receive care. 

• Service utilization: Learn what services patients use and where they receive that care. 

• Age/sex: Understanding the age and sex distribution of the patient population. 

• Race/ethnicity: Analyzing underserved patient needs. 
• Insurance coverage: Identifying the types of health insurance people are utilizing to receive care, e.g., private insurance, Medicare, self-pay, etc. 
  
  

Market and procedure data: The "what" 

Market and procedure data provide information about the actual healthcare services being performed in an area. In New York, the definitive source for this intelligence is the Statewide Planning and Research Cooperative System (SPARCS). 

SPARCS is more than just a database; it’s a strategic tool. It allows facilities to: 

• analyze historic discharge, procedure and diagnosis data; 

• track service area in-/out-migration patterns; and 

• visualize the competitive landscape across inpatient, emergency department and ambulatory surgery center settings.  

By analyzing SPARCS data, a planner can gain three critical insights: 

• Procedure volume: This shows which procedures are most common and where they are being performed, whether in an ASC or a hospital. This insight is essential for identifying high-demand services worth investing in. 

• Payer mix: This reveals how procedures are paid for, e.g., Medicare, private insurance or self-pay. Understanding the payer mix helps a facility plan for current and future investments in staff, physical plant and equipment, ensuring long-term financial viability. 

• Market share: By tracking case volume across all ASCs and hospital-based clinics, SPARCS enables you to determine a facility's position in the market. It shows exactly how much of the total procedure volume a facility is capturing compared to its competitors, providing a clear benchmark for performance. 

With this data toolkit in hand, a healthcare center can begin asking the most fundamental questions to build its strategic plan. 
 

Step 2: Building the foundation with strategic planning 

Strategic planning is the second step, where data are used for proactive planning rather than reactive decision-making. It transforms raw numbers into a solid foundation for success by informing critical decisions about location, patient populations and service utilization. This data-driven approach is also used to identify potential merger and acquisition (M&A) targets and build a data-backed case for strategic expansion. 

 
Step 3: Aligning services with community needs 

Once a facility has decided where to build and who to serve, the next step is to use data to determine exactly what services to offer. Service optimization provides this solution. It helps tailor a facility's medical offerings to match the specific health needs of the local population. Instead of offering a generic menu of procedures, a data-informed facility can create a service portfolio that directly addresses the community's most pressing health issues. 
 

Understanding demand for key procedures 

By analyzing patient population trends, a healthcare center can accurately align demand with community needs. The data allow you to determine if patients are leaving areas to receive care. Understanding the types of services patients from a specific area are utilizing and aligning that with your offerings addresses meeting those needs. This foresight enables a facility to invest in the right equipment, staff and resources.  

Identifying and filling gaps in local area 

Data analysis can also reveal which health needs in a community are not currently being met by other providers. By identifying these gaps, a facility can add new services to serve these unmet needs. This is a powerful strategy to not only grow the patient base but also become a vital and indispensable community resource. 

Optimizing for operational excellence 

The strategic value of market data extends beyond external planning; it is a powerful tool for refining internal operations. By analyzing patterns of surgical volume and utilization, administrators can more effectively manage staffing levels, equipment purchases and operating room schedules. This vital link ensures that internal resources are perfectly aligned with anticipated patient demand, minimizing waste and maximizing efficiency. 

By identifying service gaps, a facility creates a strategic opening. The next step is to analyze the competitive landscape to ensure that opening is feasible and sustainable. 

Step 4: Navigating the competitive landscape 

A deep analysis of the community also reveals the competitive environment. Understanding the market landscape helps a healthcare center anticipate challenges, adapt to shifting trends and carve out a strong market position. By thoughtfully applying data at every stage, from initial strategy to competitive positioning, healthcare centers can create a clear path to sustainable growth. 

The blueprint for success 

Community data are far more than a collection of numbers: they are the essential blueprint for building a successful and community-focused healthcare facility. By translating patient demographics and market trends into strategic insights, leaders can move beyond guesswork and plan with confidence, precision and foresight. Using data turns planning into a precise strategy that ensures facilities provide the right care, in the right place, for the right people. This benefits both the organization seeking to secure its market leadership and, most importantly, the community it is dedicated to serving.