Investing in Prevention Can Save Hospitals Millions

Investing in Prevention Can Save Hospitals Millions

Keeping employees healthy can save hospitals substantial sums in health care costs.

With soaring costs in staffing, resources and pharmaceuticals across the industry, children’s hospitals are already experiencing economic pressures, and there are more financial headwinds to come.

In 2022, family coverage for employees in all health care sectors reached $21,305—an increase of more than 20% over the past 10 years. Next year, those costs are expected to increase by 25% per claimant per year when compared to the average insured employee in the U.S., according to data from Children’s Hospital Association’s Claims and Health Analytic Resource Tool (CHART).

Preventing employees from developing chronic conditions can save children’s hospitals millions annually. For example, employees who do not have any of the top 10 chronic conditions have an average annual spend of $796. Employees with one to four chronic conditions averaged $2,337, and those with five or more chronic conditions averaged $4,777.

This data is based on children’s hospitals that participate in CHART, which analyzes and organizes medical claims, pharmacy claims and ancillary data to help children’s hospitals uncover their specific population trends and target prevention efforts.

A Closer Look


Average monthly health care cost per pediatric hospital employee in 2023.


Percentage increase of health care costs for CHART participants. The national average increase was 6.5%.


Prescription costs for employees account for 31% of total per-member, per-month costs.

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