PYA has released a new white paper exploring the ins and outs of healthcare brand valuation and the importance of strategic positioning in maintaining brand relevance within the industry.
A new white paper from PYA, “What’s in a Name? Valuation of Healthcare Brands,” outlines the importance of branding within the healthcare industry to increase reputational strength and realize greater levels of profitability.
With the rise of value-based reimbursement models, hospitals must jockey for opportunities to participate in provider networks—those opportunities will be critical. Physician groups will find hospitals with stronger brands more attractive. Healthcare organizations are exploring a variety of ways to monetize their brands, and numerous small providers are seeking affiliations with larger organizations.
PYA’s white paper outlines the advantages of robust branding. It explains the factors that influence brand strength; provides examples of organizations that have successfully leveraged their brand’s value; and explores methodologies, calculations, and considerations for brand valuation.
According to the paper, “Building a strong brand and maintaining its relevance in the market involves sustained investment and strategic positioning. While consumers may not be willing to pay more to be treated at a healthcare facility with a distinguished brand, the choice of where they would seek care is affected by the perception of quality embedded within the entity’s brand. Hence, in an environment where there is significant competition for medical services, strategic investments that improve brand awareness are critical to ensure continued relevance of health systems within their community.”
PYA’s Brand Valuation Team can help health systems, academic medical centers, and other healthcare providers evaluate value as they apply their well-developed brands to various forms of partnerships including affiliations, joint ventures, and transactions. From AMCs applying their name and expertise to improve community cancer programs to orthopedic physician groups with a strong brand value due to long-standing partnerships with major sports teams, we can help evaluate various arrangements in the context of fair market value. Myriad factors influence a health system’s value proposition, and the PYA team is experienced in understanding and accounting for the interdependence of these factors and their influence on branding and brand value.