data.table:
library(data.table)
s3 <- data.table(s3)
s3[is.na(dxgroup) & (substring(ClaimID, 1, 3) %in% ("V70", "042", "897")), dxgroup := substring(dx, 1, 3)]
s3[is.na(dxgroup) & (substring(ClaimID, 1, 4) %in% ("2024", "2967", "9786", "9788", "8263")), dxgroup := substring(dx, 1, 4)]
s3[is.na(dxgroup), dxgroup := dx]
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