Blog | Precision AQ

What’s Really Driving Your Brand’s Performance? A Practical Guide to Local Market Dynamics

Written by Precision Experts | Oct 17, 2025 2:33:37 PM

In healthcare, national averages often hide the real story. What looks like strong market access on paper may not translate into actual product utilization in the field. That’s because local dynamics - payer policies, provider behavior, and reimbursement structures - vary widely across the country. 

To navigate this complexity, Precision AQ developed two complementary tools: Local Market Analysis (LMA) and Flow of Funds (FoF). This post explains what they are, how they work, and why they’re useful for teams working in market access, brand strategy, and provider engagement. 

What Is Local Market Analysis (LMA)? 

LMA is a framework for understanding how payer and provider dynamics influence your brand’s performance at the local level. It helps you move beyond national coverage maps to see: 

  • Where your brand has true access, not just on paper but in practice 
  • Whether payers or providers are driving decisions in each market 
  • How provider behavior aligns (or doesn’t) with your access strategy 
  • What local messaging will resonate based on prescribing patterns and access barriers 

LMA is especially helpful when you’re seeing unexpected trends, like strong access but low uptake in certain cities, or inconsistent use of your product across regions. 

What Is Flow of Funds (FoF)? 

FoF focuses on the economic side of the equation. It analyzes how reimbursement structures, acquisition costs, and provider incentives shape product utilization.  

Specifically, it helps you understand: 

  • How reimbursement varies by site of care, such as hospital outpatient versus home infusion 
  • Whether providers are being reimbursed based on ASP or WAC pricing 
  • How net cost recovery influences provider preferences 
  • Where discounting strategies may be needed to stay competitive 

FoF is useful for identifying the financial levers that affect prescribing behavior, especially when economic incentives are misaligned with your brand's goals. 

Applying LMA and FoF to Real-World Brand Challenges 

Understanding how your brand performs across different markets requires more than national-level data. Precision AQ’s LMA and FoF solutions are designed to help you address the specific, often complex challenges that arise when payer policies, provider behavior, and reimbursement structures vary by region. 

Here’s how these solutions help you tackle five of the most common and pressing questions brand and market access teams face: 

  1. What is my brand’s true level of access across the country?

LMA provides a detailed view of your brand’s access status by geography, payer, and provider. It goes beyond published access levels to show where your product is actually being used, where it is being restricted, and how that compares to competitors. 

  1. What is the balance of power between health plans and organized providers for my brand?

By analyzing control dynamics, LMA helps you understand whether payers or providers are the primary decision-makers in each market. This insight allows you to adjust your strategy, whether that means focusing on contracting, provider engagement, or both. 

  1. How can I optimize my provider engagement at the local level?

LMA identifies provider systems that are either aligned with or resistant to your brand’s access position. This helps you prioritize engagement efforts, refine pull-through strategies, and support field teams with data-driven guidance. 

  1. What messages will resonate in specific geographies?

Because LMA captures local prescribing behavior and access barriers, it enables you to tailor messaging to the specific needs and realities of each region. This ensures that your communications are relevant and impactful. 

  1. How do reimbursement dynamics shape my brand’s competitive position?

FoF reveals how economic factors such as acquisition cost, reimbursement model, and site-of-care economics affect product utilization. These insights help you evaluate whether your pricing and contracting strategies are aligned with market realities and where adjustments may be needed. 

Bringing It All Together 

Local market dynamics are not just a layer of complexity—they are often the key to understanding why a brand is thriving in one region and struggling in another. Tools like LMA and Flow of Funds help uncover the specific factors that influence access, prescribing behavior, and reimbursement at the local level. 

By using these insights, teams can: 

  • Identify and address underperformance in specific regions 
  • Adjust contracting strategies based on actual economic conditions 
  • Equip field teams with data that reflects the realities they face 
  • Stay responsive to evolving payer and provider behaviors 

If your current strategy relies heavily on national-level assumptions, these solutions offer a way to ground your decisions in the local realities that ultimately shape brand success. 

See It in Action 

Want to explore how these insights come to life? Schedule a demo: michael.venters@precisionaq.com 

You’ll get a guided walkthrough of: 

  • Local payer and provider influence maps 
  • Reimbursement trends by site of care and benefit type 
  • Pull-through opportunities in underperforming regions 
  • Strategic contracting insights tailored to your brand