The Value of Brand Equity in Healthcare

In any case, we know that establishing a positive brand equity is beneficial to your brand. It’s a fact that customers are willing to pay a premium price for a product or service from a brand they recognize and trust – otherwise, luxury brands wouldn’t exist.

But, does that hold true for healthcare service providers in the U.S.? Are people willing to pay a premium price for healthcare services from a brand they trust will take better care of them and their loved ones? Fairness aside, I’d argue: yes.

In previous posts on my blog, I’ve mentioned that, at the end of the day, healthcare service providers like hospitals, urgent cares and physician practices are businesses. And these businesses need to generate a profit to continue to provide high-quality, innovative health care to patients.

Now by definition, “brand equity describes the level of sway a brand name has in the minds of consumers, and the value of having a brand that is identifiable and well thought of,” according to an article in Marketing Evolution.

So, imagine your child broke their arm at the playground – something serious, but not life-threatening. Generally speaking, folks are willing to drive further to and pay more at an urgent care they trust to ensure their child is well-taken care of.

The same goes for elective procedures. Wouldn’t you choose to have your surgery at a hospital you believe is better than others?

"Given the changes in healthcare and the reframing of the consumer experience … the power the consumer has is much more significant,” said Justin Wartell, managing director of Monigle, in an article in Healthcare Finance News. “Any time you see consumer orientation in the sense of control growing, it puts the onus on brands to start thinking about the consumer instead of just thinking about themselves."

Health is not something people are willing to mess around with. So, if you’re a private or nonprofit healthcare service provider, it may be smart to start making a healthy investment in your brand equity.