Product Blog | Trilliant Health

Measuring Physician Supply and Market Demand: A Step-by-Step Guide to Provider Needs Assessments

Written by Trilliant Health | May 22, 2025 at 3:51 PM

Using Trilliant Health’s Provider Needs Assessment Data Feed To Analyze Physician Supply and Market Demand

Table of Contents:

Why Many Health Systems Get Supply and Demand Wrong 

The supply of physicians is increasingly inadequate to meet the demand for healthcare services across rural, suburban and urban communities. Burnout, an aging workforce and pandemic-driven attrition are only widening this gap. To compete effectively, health systems must design provider networks to address market needs.

However, many health systems rely on data that is merely sufficient to comply with law but inadequate to inform strategic decision making.

Decisions based upon national physician-to-population ratios, outdated provider listings and inaccurate provider-practice affiliations are guaranteed to be suboptimal at the market level. Without market-specific data that accounts for real-time provider specialties and practice patterns, provider needs assessments miss the mark – leading to missed opportunities and strategic blind spots.

How Data-Driven Provider Needs Assessments Inform Improved Strategic Planning 

By benchmarking provider supply with service demand at the local level, provider organizations can: 

  • Identify misalignment between where provider supply and service demand  
  • Pinpoint strategic growth opportunities in underserved, low-share markets 
  • Inform compliant and targeted recruitment strategies aligned with market needs 
  • Strengthen network performance by reducing patient outmigration 

What This Guide Will Reveal About Physician Supply and Demand in Your Markets

By following this guide, you will be able to answer the following critical questions with confidence:

  • Which providers practice in your market? 
  • What are the practice patterns of providers in your market? 
  • What is the population in the market? 
  • What is the ideal provider-to-population ratio based on market similarity? 
  • Is the market underserved or overserved? 
  • How does provider supply vary within the market? 
  • How does the provider supply and market demand vary by specialty? 

This guide will enable you to answer each of these questions using Trilliant Health’s Provider Needs Assessment data feed.

Step-by-Step Guide: Conducting a Provider Needs Assessment 

The following steps will enable you to measure and analyze your market share:

  1. Identifying Providers in Your Market
  2. Calculating the Current Full-Time Equivalent (FTE) Supply
  3. Calculating the Current FTE Demand
  4. Identifying Specialties With Deficit or Surplus in Your Market
  5. Turning Insights Into Strategic Action

Each of these steps is designed to give you the insights necessary to make informed strategic decisions. Let’s break down each step in detail.

Step 1: Identifying Providers in Your Market

To assess provider supply accurately, the first step is to identify which providers are actively delivering care in your market. This goes beyond pulling from NPPES or outdated physician rosters which often include inactive providers, duplicates or incorrect practice locations. 

Our up-to-date, comprehensive provider directory enables you to pinpoint which providers are actively practicing at which locations within your own market definitions. This level of precision is essential for geographically accurate supply calculations and sets the foundation for the rest of your needs assessment. 

In the Data:

  1. Navigate to Trilliant Health’s Workbench, open a new workbook and select the provider needs assessment data source. Name this worksheet “Provider Supply.” 
  2. Choose your preferred geographic granularity and drag those fields into the filters pane. Select values that match your market definition. (In this example, we’ll look at Austin, TX and the surrounding area.) 
  3. To narrow by specialty, drag the specialty field into the filters pane and select the specialty of interest. (Here, we’ll use gastroenterology as an example.) 
  4. Add provider demographic and practice information fields to the rows in your worksheet. This will generate a list of providers practicing within your defined market.  

Start your Provider Needs Assessment by choosing your preferred location and specialty in Workbench.
In this example, we will focus on Austin, TX and the surrounding areas and gastroenterology.

🔑 Key Insight: Traditional provider needs assessments often produce unreliable results because they are not grounded in an up-to-date provider directory. Without insight into which physicians are actively practicing in each market – and in what capacity – it is impossible to assess whether a market is experiencing a surplus or a deficit of supply. This fundamental analysis flaw leads to misinformed strategies, overlooked opportunities and misaligned recruitment efforts.

Step 2: Calculating FTE Supply in Your Market 

Once you identify the providers who are actively practicing in your market, the next step is to quantify their presence using FTE (Full-Time Equivalent) calculations. This is more than just a headcount – it is a more realistic and nuanced measure of supply that accounts for where and how often providers actually deliver care. 

For example, a gastroenterologist who splits their time across multiple locations or is approaching retirement will contribute less than 1.0 FTE to any one site. This step translates provider rosters into an accurate, actionable measure of market-level supply. 

In the Data:

  1. In your existing workbook, add the FTE fields using a sum calculation. This will display each provider’s total FTE across primary, secondary and tertiary practice locations. 
  2. Aggregate the individual FTEs to calculate the total supply of your specialty within the defined market. 

The example market FTE supply calculation for gastroenterologists is 49.0

🔑 Key Insight: 72% of the providers practice at multiple locations, yet many analytics vendors rely on a single practice address from National Plan & Provider Enumeration System (NPPES) data. This leads to inflated or inaccurate provider counts, especially in multi-site organizations using one Type 2 National Provider Identifier (NPI) record across several physical locations. Without an accurate understanding of practice locations, any analysis risks misrepresenting provider availability. 

Step 3: Calculating FTE Demand in Your Market 

With an accurate understanding of provider supply, the next step is to calculate FTE demand the number of providers needed to meet the demand for healthcare services in a market. This step helps determine whether a market is over- or underserved. 

Unlike supply, demand is not uniform. Rural, suburban and urban communities have different access barriers, care-seeking behaviors and population densities – all of which influence provider need. 

Trilliant Health’s tiered approach to FTE demand accounts for these differences by calibrating expectations based on local market realities. This ensures your needs assessment doesn’t apply one-size-fits-all benchmarks to very different markets – leading to a more accurate and equitable view of need. 

In the Data: 

  1. Create a new worksheet and apply the same geographic and specialty filters you used in Step 1. Name this worksheet “Provider Demand. 
  2. Add specialty, FTE demand and population fields to the rows on your worksheet. This will generate a table showing market-level demand for the selected specialty. 

The example market's FTE demand for gastroenterologists varies at the ZIP code level.

🤔 Analysis Question: Does your current approach to conducting provider needs assessments account for demand variation across market types? The need for gastroenterology services varies between markets based on population characteristics and disease incidence. Yet many analyses apply a single benchmark across all geographies – oversimplifying and misrepresenting true demand. To address this, we developed specialty-specific provider-to-population ratios across five distinct market segments, ensuring that demand estimates reflect real-world differences in utilization and access. 

Step 4: Identifying Specialties With a Deficit or Surplus in Your Market 

Now that you’ve calculated both FTE supply and FTE demand, the next step is to compare them. This side-by-side analysis reveals whether your market is over- or underserved by specialty – and, if so, where. 

This comparison allows you to surface critical service gaps or identify overserved areas that may affect access, growth and network performance. 

In the Data: 

  1. Create a new worksheet and apply the geographic and specialty filters you used in Step 1. Name this worksheet “Provider Needs Assessment.” 
  2. Add geography, specialty, FTE supply, FTE demand and FTE delta to the rows on your worksheet. This will generate a table showing market-level surplus or deficit by specialty. 
  3. To enhance visibility, update the visual display to a heat map in Workbench to highlight areas of concern or opportunity. 

The table immediately shows FTE deficits across counties, representing strategic opportunities for gastroenterology service line growth in the market.

🔑 Key Insight: Geographic granularity in your analysis can impact your perception of market coverage. When one of our clients conducted a provider needs assessment, their overall market appeared overserved for orthopedic surgery at the county level, but at the ZIP code-level, there were areas of localized deficit. This insight allowed them to target recruitment and expansion efforts to the specific areas where patients lacked access – supporting compliant and data-driven network planning.

Step 5: Turning Market Insights Into Strategic Actions 

With a detailed understanding of where your market is over- or underserved, the final step is turning those insights into targeted, strategic decisions that drive meaningful change. The goal is not just to identify gaps but to act on these insights to improve access, optimize resources and support sustainable growth. Consider the following strategic actions:

  1. Support compliant physician recruitment efforts: Use market-level supply and demand data to validate hiring decisions and meet regulatory requirements for CON filings and Stark Law exceptions. 
  2. Address oversaturation: Identify specialties or regions with surplus providers to inform redistribution strategies or hiring pauses. 
  3. Develop a long-term strategy for network development: Combine real-time provider supply insights from Provider Needs Assessment with our 10-year Demand Forecast for long-term planning. 

Key Takeaways 

A Provider Needs Assessment is more than a one-time analysis it is a strategic tool for aligning your network with real-time market realities and long-term population needs. A dynamic and data-driven approach to conducting provider needs assessments supports smarter, more sustainable growth. 

  • Supply is more nuanced than headcount: Traditional provider lists often miss key variables like retirement risk, multiple practice locations and part-time schedules, leading to inaccurate assessments of network capacity.
  • Demand is not one-size-fits-all: Applying uniform provider-to-population ratios across all markets ignores critical variations in care-seeking behavior and access barriers between urban, suburban, and rural communities. 
  • Granularity reveals hidden gaps: While state and county-level analyses are valuable, digging deeper into ZIP code or sub-regional views can uncover local disparities that might be missed at higher levels of aggregation. 

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