The following post was written by Sarah Montijo, MHA, Director of Business Analytics and Consulting Executive for Halley Consulting Group.
Sit in almost any hospital leadership meeting focused on growth or strategy, and you will likely hear the phrase market share—the percentage of admissions the hospital captured relative to the market basket, or total admissions for a given area. The competitive landscape of healthcare makes monitoring your market share trends, and understanding what and who is impacting those trends, a must.
Gone are the days when hospital CEOs could focus strictly on managing the hospital. Now they must also manage their market. These hospital CEOs, whom we often refer to as market managers, have to appreciate what drives their market share by understanding the relationships and affiliations that exist with physician practices in their community, and by forging relationships where they are currently absent. Market managers should consistently ask themselves three questions:
- Where is my market share?
- Who holds my market share?
- What are they doing with it?