Why do healthcare organizations need to understand market share, and what developments in healthcare are increasing the significance of market share data? Control of market share is a growing concern in healthcare. This information not only indicates the position of the organization or service in the market but also serves as a basis for evaluating the success of a marketing initiative. This critical piece of information is often difficult to calculate in healthcare.

Southeast Orthopedic Clinic (SOC) had long been the premier orthopedic practice in a middle-sized southern city. Over time, however, competition had become increasingly fierce, and concerns were growing over the perceived erosion of the practice’s market share in its community. The physician management team asked the SOC marketing consultant to determine the practice’s current market share and, to the extent possible, that of its competitors.