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A 18 minute read
cbsa-analytics-selling-healthcare
March 14, 2016

*Updated June 2020

Leveraging market analytics has proven to be a key strategy for companies planning to map sales territories and target ideal prospects. By analyzing healthcare organizations within a particular market segment, vendors can understand the type of consumers in that region and address their biggest pain points. 

Pharmaceutical and medical devices companies might, for instance, use diagnosis and procedure volumes to gain vital insights into the needs of individual hospitals and care facilities. Staffing and recruiting agencies, on the other hand, rely more heavily on HCAHPS patient satisfaction scores as the first indicators of physician shortages. But in many cases, one tool is often overlooked: CBSA codes. 

Core Based Statistical Areas (CBSAs) were introduced by the Office of Management and Budget (OMB) in 2003. A CBSA is a metropolitan or micropolitan area with a population of at least 10,000 people. This is often a city and its surrounding suburbs, like CBSA 26420 —which encompasses Houstonthe Woodlands, and Sugar Land, TX. 

The table below shows the five largest CBSAs based on estimated 2018 population. 

Largest CBSAs by Estimated Population 

CBSA Code 

CBSA Name 

Est. Population 

35620 

New York-Newark-Jersey City NY-NJ-PA 

19,979,477 

31080 

Los Angeles-Long Beach-Anaheim CA 

13,291,486 

16980 

Chicago-Naperville-Elgin IL-IN-WI 

9,498,716 

19100 

Dallas-Fort Worth-Arlington TX 

7,539,711 

26420 

Houston-The Woodlands-Sugar Land TX 

6,997,384 

Fig 1 CBSA market overview data from Definitive Healthcare's Hospitals and IDNs database. Estimated patient population is from CY 2018, the most recent available. Accessed June 2020.

For the purposes of healthcare market analytics, Definitive Healthcare has aggregated many data points by CBSA to allow for market analysis at this intermediate level between state and citiesBelow are three ways leveraging CBSA information can be most useful for your business. 

Claims Analyses 

When gauging the market for applications of a specific pharmaceutical or medical device, understanding the volume of diagnoses and procedures performed in a given area can be essential to finding sales opportunities—including competitor displacement.

For example, if a medical device manufacturer sells a device that is used in a specific procedure, and they are trying to figure out where they should build up their sales force, they can review how many relevant procedures are performed by CBSA. This offers more specific insight than state-wide analysis without making your sales directors do the work of piecing together cities and towns performing high volumes of said procedure. 

A medical device company selling stents would leverage claims information to find where the greatest volume of angioplasties are being performed. The facilities reporting the most angioplasty procedures may be looking for new stent solutions, offering the chance of competitor displacement. Additionally, vendors can analyze accompanying quality metrics—like 30-day readmission rates or hospital-acquired condition scoresto cater their messaging and device solutions.  

The table below shows potential opportunities in CBSA 35620 (New York-Newark-Jersey City NY-NJ-PA) based on diagnoses codes. 

Top Inpatient Diagnoses for CBSA 35620 by Volume 

ICD-10 Code 

Description 

Total Number of Diagnoses 

I10 Essential (primary) hypertension 656,711
N179 Acute kidney failure, unspecified 293,559
E785 Hyperlipidemia, unspecified 243,903
I2510 Atherosclerotic heart disease of native coronary artery without angina pectoris 240,666
E119 Type 2 diabetes mellitus without complications 214,945

Fig 2 Inpatient diagnosis volumes for CBSA 35620 are from Definitive Healthcare's Medical Claims database. Inpatient diagnosis volumes are from the 2019 claims year, the most recent full-year data available. Commercial claims data is sourced from multiple claims clearinghouses and updated monthly. Accessed June 2020.

Provider Density Analyses 

Other means of market analysis include clinician densityA CBSA with low provider density may mean that the area is facing a staffing shortage, and would make an ideal target for staffing and recruiting agencies looking to place locum tenens or full-time providers. The facilities in this area may also be receptive to telehealth solutions that would connect their patients with specialists not physically working in their region. 

The number of hospitals and group purchasing organizations (GPOs) can also influence the value of a particular CBSA. More hospitals mean more opportunities—particularly if a vendor can work with an entire health system or GPO.

The patient population per hospital or per bed may also be of interest to people selling into the healthcare industry. High rates of bed usage could mean that a hospital needs more clinicians or is ready to expand. Low rates of bed usage could indicate a hospital is in an area with high competition, or that the patient population does not have proper access to care.  

Some of this data is shown for the top 5 CBSAs below. 

Provider Density for the 5 Largest CBSAs 

CBSA Code 

CBSA Name 

Population 

GPOs/RPCs 

Hospitals 

Avg. Population per Hospital 

31080 

Los Angeles-Long Beach-Anaheim CA 

13,291,486 

17

154

86,308 

35620 

New York-Newark-Jersey City NY-NJ-PA 

19,979,477 

22 

236

84,658 

16980 

Chicago-Naperville-Elgin IL-IN-WI 

9,498,716 

16 

141 

67,366 

26420 

Houston-The Woodlands-Sugar Land TX 

6,997,384 

14

137

51,075

19100 

Dallas-Fort Worth-Arlington TX 

7,539,711 

18

163

46,255

Fig 3 CBSA market overview data from Definitive Healthcare's Hospitals and IDNs database. "Average population per hospital" metric is calculated by dividing CBSA population by total number of hospitals. Estimated patient population is from CY 2018, the most recent data available. Accessed June 2020.

Technology Utilization Analyses 

Definitive Healthcare also synthesizes technology usage by CBSA, which can be used to recognize regional preferences for certain technologies. In the New York-Newark-Jersey City CBSA, for example, Epic leads the market for inpatient EHR software with twice the market share of MEDITECH.

But in the Los Angeles-Long-Beach-Anaheim CBSA, MEDITECH leads the market with a share several points higher than Epic. Technology implementations and market share information can highlight opportunities for vendors and help them understand the competitive landscape. 

hosp-cbsa
 Fig 4 A map showing the locations of hospitals, IDNs, ASCs, SNFs, and urgent care clinics operating in CBSA 35620, New York-Newark-Jersey City NY-NJ-PA. Screenshot taken from the CBSA market overview in Definitive Healthcare’s Hospitals & IDNs database. 

By analyzing markets based on CBSA codes, there are a number of ways to dig into key information that can maximize your chances of success when selling into or working with the healthcare industry. 

For more information on how to effectively target your market and increase your profits, sign up for a free trial of Definitive Healthcare’s comprehensive product suite. The hospitals & IDNs platform tracks daily updates on more than 8,800 hospitals and health systems across the U.S. 

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ABOUT THE AUTHOR

Alanna Moriarty

Alanna Moriarty is a healthcare industry writer and content strategist. As the Content Marketing Manager for Definitive Healthcare, she most enjoys connecting the dots between data and care delivery. ...


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