Calculating total addressable market

The challenge

Accessing reliable data on their addressable market in a time crunch

A consultant firm was working with a private equity company to help them with PE Due Diligence. The private equity company was looking to invest in the OBGYN practice space, and they hired the consulting firm to help them determine their total addressable market (TAM). The consulting firm had previously used a data provider that took up to 14 days depending on the project; however, given the time sensitivity around the potential investment, the consultants needed real-time, accurate data to run a TAM that could be ready within 3 days. They needed to find another solution.

The solution

Gaining a comprehensive view of the market with claims, affiliations, and referral data

The consultant company chose Definitive Healthcare because of their extensive, real-time data and their ability to easily partner with Definitive Healthcare experts for custom reporting. They used commercial medical claims to identify what practices currently performed OBGYN-related services. Claims volumes were viewed at the provider level and regional level to understand the competition in higher volume markets. The consultants also gained deep intel into the market using referrals and affiliations data. Medical Claims were also used to understand what physicians referred patients to certain practices and where they were located. Then they overlayed affiliations data onto the claims data to capture a complete story of how the entity operates — whether the practices were owned by hospitals, part of larger networks, or were standalone. This data enabled the consultants to create a TAM for their client.

The impact

7x faster access to data needed to calculate TAM compared to other data providers

The company’s previous vendor up to 14 days to provide the reporting they needed. Definitive Healthcare delivered a custom data pull in 2 days, providing the team with the data they needed to create a TAM and ultimately make a recommendation on an investment strategy within their client’s deadline. With Definitive Healthcare’s data, the team used Medical Claims volumes to understand the financial opportunity in the market. Location information was used to understand what markets have the most opportunity and competition. Referral data was used to identify areas with physician champions that will have a meaningful impact. Definitive Healthcare’s Medical Claims and affiliations data combined gave them real-time insight that no other vendor could provide, giving them the most accurate view into their TAM. This client now uses Definitive Healthcare for all their PE due diligence TAMs due to breadth and depth of data, real-time time via Medical Claims and affiliations, and timely turn around.