Using Hospital Brand Value to Inform Pricing and Strategy

Hospitals and health systems are facing growing pressure to justify what they charge. Price transparency requirements have made healthcare prices publicly visible, increasing scrutiny from insurers and consumers.

Recent reporting has questioned whether transparency has changed how consumers shop for care. A February 2026 NPR article noted that patients rarely use posted hospital prices to compare options, given the complexity and uncertainty of healthcare decisions.

That critique is largely correct. Price transparency is now a reality providers must contend with – regardless of whether it changes consumer behavior. As a result, providers are increasingly being asked not just what they charge, but why.

Answering that question requires understanding how much consumers are willing to pay and for which types of care.

Measuring Value Through Real Care Decisions

In our work with hospital systems, we measure brand value through realistic care decisions. Consumers are asked to choose where they would go for care under specific clinical scenarios, trading off among hospital brand, out‑of‑pocket cost, appointment timing and several other real-world constraints.

This approach mirrors how healthcare decisions are actually made and allows brand value to be quantified in dollars.

One finding is consistent: hospital brand value is highly situational. For serious or complex conditions – such as cardiac or neurological care – consumers are often willing to pay more to access certain hospitals. For routine or lower‑acuity care, convenience and cost typically matter more than brand.

From a hospital perspective, this means pricing power is concentrated in specific types of care – not evenly distributed across all services. It also varies across hospitals, reflecting differences in where each is perceived to be strongest by condition or service line.

Hospital Pricing and Transparency in Context

This insight is especially relevant as hospitals are required to post prices. Transparency has shifted the conversation from what you charge to whether your prices align with the value consumers place on access.

Understanding willingness to pay by condition helps hospitals price procedures more confidently. It clarifies where higher prices are supported by consumer value – and where pricing needs to reflect more commodity‑like expectations.

The same evidence can also support reimbursement discussions with insurers, allowing hospitals to demonstrate that consumers place measurable value on accessing their services for specific conditions. (See TRC’s case study on how a major medical center used consumer trade‑off research to build a defensible pricing approach across more than 200 procedures.)

Informing Strategic Decisions with Market Research

Once hospitals understand where consumers place the greatest value on receiving care at their facility or from their providers, that insight can also inform broader strategy.

Many providers already demonstrate differentiation in certain service lines but face constraints on capacity or access. In those cases, research on willingness to pay can help evaluate whether expanding access – through added capacity, improved scheduling, or broader reach – is likely to generate meaningful return.

Here, investment is not about enhancing reputation. It is about making valued care more accessible, informed by evidence of where demand and value align.

Price Transparency – From Visibility to Informed Action

Price transparency has not turned healthcare into retail – but it has made pricing decisions more visible and more consequential.

Providers that understand where consumers value receiving care, and how much they are willing to pay for it, are better positioned to:

• Price services confidently
• Support reimbursement negotiations with evidence
• Evaluate investments that will expand access in appropriate areas
• Align strategy with how consumers actually make decisions

Conjoint analysis and pricing research translate consumer choice into clear guidance – revealing not just whether a healthcare provider is preferred, but how much that preference is worth, for which conditions, and relative to alternatives.