HealthOctober 27, 2025

The critical role of value sets in data-driven healthcare: Challenges and solutions

Learn the difference between intensional and extensional value sets, the challenges of managing them, and strategies to maintain accurate, standardized healthcare data.

In today’s data-driven healthcare landscape, value sets play a critical role in ensuring accurate insights from patient data. Whether used in clinical decision support, quality reporting, prior authorization, utilization management, or any healthcare analytics, well-maintained value sets are foundational to the accuracy, efficacy, and success of data-driven initiatives.

Value sets are a simple concept, but  challenging to curate and maintain for three main reasons:

  1. Difficulty authoring with required precision for specific use cases
  2. Maintainability when underlying codes are ever-changing
  3. Governance to ensure accuracy, applicability, auditability, and re-use

I’ll dig into each of those, discussing the critical role of intensional value sets, and highlight the essential features of a value set management platform to manage use case-specific needs.

Before we jump in, what are value sets?

At Wolters Kluwer, we always say, “healthcare runs on codes.” And it’s 100% true, every system throughout the healthcare ecosystem runs and relies on codes, and nearly everything is coded into the Electronic Health Record (EHR).  Interoperability regulation, currently defined in the USCDI, ensures that patient data are coded consistently across EHRs to enable interoperability across the ecosystem, and, of course, claims are coded to billing standards so that providers can get paid.

But, there’s an important categorization of codes that’s equally as essential as the codes themselves. The categorizations are called “Value Sets”, also referred to as “Code Groups,” “Code Sets,” “Epic Groupers”, or OMOP’s “Concept Set” (Leave it to the terminology standards to introduce synonyms for basic objects in the models.). These value sets organize codes that have a similar meaning into groups, so each time you need to identify patients with a certain characteristic, you don’t have to search for each individual code.

An example of value set management in clinical decision support

A classic clinical decision support rule is ‘if patient has diabetes, then ensure an A1C test result less than 6 months old’. Variations of this same rule exist for quality reporting, analytics, and population health.  Across each, without value sets, this rule would read:

‘if patient has codes in [E11.8, E11.9, E11.40, E11.41, E11.42, E11.43, E11.44, E11.49, E11.51, E11.52, E11.59, E11.65, E11.69, or …], then make sure they have a result for codes in [71875-9, 4548-4, 17855-8, 4549-2, 17856-6, 62388-4, 96595-4, or …] less than 6 months old.

It’s not very readable, but worse, there is a high potential for the code to be incomplete, inaccurate, or out of date.

Value set management tools solve this challenge by centralizing the maintenance of the sets of codes that mean ‘diabetes’ or ‘A1C Test’ and making those definitions reusable and easy to maintain so you can simply have a rule that reads:

‘if patient has ‘diabetes’ then make sure they have a result for ‘A1C’  less than 6 months old.

This enables your informaticists to focus on building the right rules, or your data scientists to create the right prompts to build the AI-agents to deliver:

  • Accurate cohort identification for population health or care management
  • Trustworthy insights from real-world evidence (RWE) and real-world data (RWD)
  • Digitally computable and precise prior authorization rules for utilization management

How intensional value sets help achieve precision

It’s not rocket science to find the ICD-10 diabetes codes. With a little knowledge or an AI-prompt, you can get a list of diabetes codes that will be reasonably complete and accurate.

But, what if you only want Type II Diabetes, or Type II Diabetes codes that are currently valid and billable, or Type II Diabetes codes (SNOMED and ICD-10) that have ever been billable. What if you want to infer the patient is diabetic based on the medications they are taking? Or, differentiate between patients taking oral vs. injectable semaglutide. Or what if you want to consider the problem list, coded in SNOMED rather than ICD-10?

That’s where the precision gets tough and where authoring with intention can help. The opposite of intensional, which takes the intension for the group and converts it to a rule, is extensional, which is just a list of codes. If you define with intention, you can be confident you are getting the desired codes. If you just define the list of codes, you may not have what you want.

Examples of intensional vs. extensional value sets

Example Use Case Intensional: Rules-based, automatically updates Extensional: Static code lists, must be manually updated
Research study referencing oral antineoplastics Include RxNorm and NDC ‘antineoplastics’ where ‘route’ = ‘oral’ Include
RxNorm:  2548733, 2548736, 2548738, 2548739, 2548732, 2551211, 2551204, 2550719, 2559725, 2559729, + 693 more codes

NDC:  00074057928, 72237010601, 72237010611, ….
Research study evaluating GLP-1 efficacy, differentiating between oral and injectable Receptor Agonists’ where ‘Route’ equals ‘oral’ or ‘subcutaneous’

MediSpan: 200718, 207658, 218337...

RxNorm:  1534800, 1534805, 1534820, 1534822, 1551295, 1551300, 1551304, 1551306, 1803894, 1803896, 1803902, 1803903, 1990866, …

NDC:  00169413297, 00169413211, 00169413212, 00169413290, … 
Analytics or clinical decision support rules for Billable Type II Diabetes Mellitus excluding in remission Include ICD-10 that are ‘Type 2 diabetes mellitus’ excluding ‘Type 2 diabetes mellitus without complications in remission’ excluding non-billable

ICD-10 Include:  E11.00, E11.01, E11.10, E11.11, E11.21, E11.22, E11.29, E11.311, E11.319, E11.3211, E11.3212, …

Exclude:  E11.Z
Medical policy used for prior authorization of knee replacement surgery referencing conservative treatments like physical therapy.   Knee Replacement Surgery:  Include CPT that are ‘arthroscopy, knee, surgical’

Required Physical TherapyInclude CPT that are ‘Therapeutic procedure, 1 or more areas, each 15 minutes’

Knee Replacement Surgery:
CPT Include:  27447

Physical Therapy: 
CPT Include:  97116, 97113, 97112, 97124, 97110

It feels a bit like AI, and while there’s some AI used to enable it, being able to author with intention is intelligently leveraging the ontological relationships and knowledge about each domain and terminology to translate a user’s precise intention into rules that can dynamically resolve to the right codes.

Intensional value sets simplify maintenance

It’s incredibly rewarding to create a precise value set definition, including exactly the codes you want across multiple terminologies and then see it in action, verifying that the CDS rule fires precisely when it should or that your analytics is grabbing exactly the right patients for a research study.

But…then…ICD-10 updates, CPT updates, and the medications are updating all the time, and suddenly you don’t know if any of your value sets are up to date.  Worse, your analytics team, data scientists, or stakeholders may suddenly see inexplicable anomalies in the data, like a sudden and dramatic decrease in chronic kidney disease across a cohort, or Engineering regression tests are suddenly failing for any diabetes related queries.

This is a scenario that product managers and informaticists dread, and one often caused by challenges in managing terminologies and value sets.

With a terminology management platform and intentional value sets, you don’t have to worry about that happening.  When the standards automatically update, the intensional value set definitions are re-evaluated against the new codes and automatically update. While there is joy in creating a value set, nothing beats the joy of watching them all automatically update, overnight, while you sleep.  Instead of several months manually reviewing and updating all those lists of codes, you just get to quickly review what changed.  Or, with a ‘set it and forget it’ option, you don’t have to review anything.

This automated maintenance may seem like AI, but it’s actually the result of intensional value sets built within an advanced terminology management platform. Offering the convenience of automated updates with the reassurance and reliability you can trust.

The importance of governance in value set management for accuracy, applicability, and auditing

How many value sets for ‘Diabetes’ does your organization have – and why so many?  When someone needs a list of Diabetes codes, they don’t know that the other definitions exist, what they were created for, or what decisions went into what was included or excluded. So, what do they do? They create their own. And, five minutes later, that one is out of date too.

So, how do you avoid that? With good governance and a value set management platform that enables collaboration, transparent re-use, and the customization of value sets.

‘Governance’ refers to several important things when it comes to value set management:

  • Ability to define user roles and workflow
  • Ability to add standard or custom metadata to the value set (description, identifiers, tags, etc.)
  • Versioning so you know what the codes in the group were at a point in time
  • Audit trails so you can see who did what when  

Those are all important, but the most important “governance” is the ability for users to collaborate on the definition of the value set. Be able to ask questions, get answers, and record the decisions that were made in the development of the value set.  This, along with the description and definition of the group, is where users will look to see if this is a code group they can re-use or customize, or if they need to create their own value set.  It also allows current users of the value set to quickly answer, “Why is this code in?” or “Why isn’t that code in?”  These features create tremendous time savings (and make the impossible possible) over traditional approaches like spreadsheets.

How to evaluate value set management tools

What is most important for you in a value set management platform depends on your use case, your organization, the resources you have to work on value sets, and your project timeline. Some features of a value set management tool to evaluate are:

  • Comprehensive terminology library: Does the vendor provide standard value sets? Does the terminology library include crosswalks and ontological relationships?
  • Intensional value set authoring: Is the UX intuitive to author complex value sets easily? Can you rapidly onboard any existing value sets, including converting extensional value sets to intensional?
  • Automated maintenance and impact reporting: Does the solution provide insights into how value sets are impacted by code updates?
  • Collaborative governance: Can your team collaborate via tagging and discussions within the tool? Does it allow transparency into the decisions made while defining each value set?

Make sure to consider who is authoring and maintaining value sets at your organization and their skill set.  We see three primary types of users: clinical informaticists (with strong clinical experience), coders (with strong knowledge of codes for billing or risk adjustment), and technical users (who need to define value sets for their applications).

Think about your users and their needs. If you have a team of clinical informaticists who want to author intentional value sets with the precision needed for your use case, make sure you have a tool that enables them. If you don’t, make sure you partner with a vendor that can help with that.

Conclusion: Overcoming challenges to unlock the full potential of value sets

Value sets are the unsung heroes of healthcare data—quietly powering everything from clinical decision support to analytics, and prior authorization. But their impact hinges on how well they’re authored, maintained, and governed.

By embracing intensional value sets, organizations can achieve greater precision, scalability, and resilience in the face of ever-changing terminologies. And with the right value set management platform, they can empower users across clinical, coding, and technical domains to collaborate effectively and focus on what matters most: delivering better care through better data.

Whether you're just starting to evaluate tools or looking to optimize your current approach, consider platforms that offer:

  • Automated updates and impact reporting
  • Rich terminology support and crosswalks
  • Governance features like audit trails and collaboration
  • Integration options that fit your enterprise architecture

It may not be AI—but it might feel like it. And that’s the kind of smart, scalable solution healthcare needs.

Data Quality Workbench
Sarah Bryan Headshot
Director of Product Management at Health Language, Wolters Kluwer, Health
Sarah Bryan is a healthcare innovator and product leader dedicated to transforming clinical terminologies into actionable insights, driving data accuracy, interoperability, and economic improvements in healthcare.
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