7 Truths Most People Don’t Know About Children’s Hospitals

While most people know that children's hospitals treat sick children (and host kids’ favorite celebrities), some of their most important work goes on behind the scenes and with little fanfare. These seven little-known facts have far-reaching impacts not only on our nation’s children but on entire communities and even the country.

1. They’re community anchors

Children’s hospitals are deeply embedded in their communities, offering far more than medical care. They address root causes of health conditions in the places children and their families live, work, and learn. Housing remediation, food clinics, legal aid, vocational training, financial mentorship, and education support are only a handful of the services they provide through their own programs and community partnerships. An American Hospital Association (AHA) analysis showed that tax-exempt hospitals provided more than $129 billion in total benefit to their communities in 2020 alone.

2. They’re economic engines

Children’s hospitals significantly contribute to local economies. They employ thousands of health care professionals, researchers, and support staff, creating a financial ripple effect in surrounding businesses. They develop sustainable local jobs by directly educating and training those in the community. Their operations generate millions (in some cases billions) in economic activity annually through purchasing, construction projects, and community partnerships. As non-profits, they invest their funds into hyperlocal economic support, such as providing capital for minority-owned businesses and building affordable housing. Moreover, they attract talent and investment to their regions as professionals and families relocate near these centers of excellence.

3. They’re medical centers for entire regions

Children’s hospitals are often the primary pediatric care providers for vast geographic areas, sometimes spanning hundreds of thousands of miles across multiple states. They serve as referral centers for complex cases, operate comprehensive transport systems to transfer critically ill children, take their care into underserved and rural areas, and train community hospital staff in pediatric care. By bridging gaps in access, children’s hospitals ensure that all families, regardless of location, benefit from expert pediatric care.

4. They’re underfunded

Medicaid is the largest payer for pediatric care, covering 37 million children in the United States — nearly half of our nation’s kids. Reimbursement rates for services provided to children’s hospitals often fall short of actual costs, leaving significant funding gaps. In some states, Medicaid’s rates are 70% lower than Medicare’s.  These shortfalls strain hospital resources, limiting their ability to expand services, update infrastructure, and hire staff. Despite this challenge, children’s hospitals remain committed to providing care to all kids, regardless of their family’s ability to pay.

5. They’re pioneers

Children’s hospitals lead research efforts that have paved the way for groundbreaking treatments for rare diseases, innovative surgical techniques, and life-saving therapies. Research in children’s health faces unique challenges, including ethical concerns, fewer participants for studies, less funding, and longer approval time frames. Without the research and development from children’s hospitals, life-changing treatments wouldn’t be possible. Thanks to children’s hospitals’ advances in care, fewer children today die from diseases, complications, and infections.

6. They’re understaffed

Children’s hospitals are facing severe staffing shortages across their systems, from surgeons to support staff. The Children’s Hospitals Graduate Medical Education (CHGME) program is vital for training the next generation of pediatricians and pediatric specialists. Despite its importance, funding for CHGME has historically lagged behind similar programs for adult care. This disparity exacerbates staffing shortages, leaving hospitals struggling to meet the demand for pediatric care.

7. They provide specialized care

Children’s hospitals exist to serve children. Everything they do is tailored to young patients who require specialized equipment, programs, and treatments, whether a newborn or a new graduate. Highly trained specialists manage complex pediatric conditions such as congenital heart defects, childhood cancers, and rare genetic disorders. Families are integrated as members of the care team, and environments are specially designed to help kids feel at ease during their treatment. These differences in children’s hospitals significantly improve outcomes and support long-term health and development in children.