PEOPLE SOLUTIONS

Cost reduction now outweighs talent priorities for 2026

2026 marks the first time hospitals and health systems ranked reducing costs above attracting and retaining talent as a benefit plan priority, increasing eight points from 2025. This mirrors a change the broader market experienced the year prior and the cumulative impact of years of high healthcare costs.

Despite the shift, attracting and retaining employees still ranks higher for hospitals and health systems than it does for the broader market, reflecting the continued importance of workforce strategy in an industry facing persistent labor challenges.

For healthcare organizations, in particular hospitals and health systems, cost pressure is coming from both sides: the broader financial pressures of delivering care and the rising cost of providing benefits to their own workforce. As high-cost therapies, complex claims, and rising cost-per-case severity continue to drive health plan spend, organizations are placing greater scrutiny on benefit costs and looking for opportunities to manage spend while preserving the employee experience.

Hospitals & health systems: 2026 National Benefits Survey insights report

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What are the top drivers of health plan spend for hospitals?

$1-$25K CLAIMANTS

Exams & screenings

$25K-$300K CLAIMANTS

Musculoskeletal

$300K+ CLAIMANTS

Cancer

84%

of PMPM (per member per month) trend is driven by claimants who incur less than $300K in claims.

66%

of PMPM trend is driven by 6.5% of claimants within the midcost range.

78%

of overall healthcare trend is driven by medical services, which are inflating faster than prescription drugs.

Source: Lockton Market Experience Review, data through June 2026

GLP-1 coverage shows a more targeted approach to cost management

While many employers have excluded GLP-1 coverage for weight loss in response to rising costs, hospitals and health systems are more likely to maintain coverage as part of a competitive benefits strategy. At the same time, they are taking a more active approach to managing that investment through strategies designed to support appropriate utilization and outcomes.

Rather than simply eliminating coverage, healthcare organizations are becoming more deliberate about managing the investment by ensuring clinical pathways support appropriate utilization, ongoing health management, and better outcomes.

Hospitals and health systems report higher adoption of comprehensive GLP-1 strategies and intensive lifestyle management requirements than the broader market, reflecting an effort to balance access to a highly valued benefit with the need to manage its cost.

Health systems are taking a more targeted approach to managing spend

As cost pressures persist, hospitals and health systems are looking beyond broad cost-cutting measures and becoming more intentional about where and how they manage health plan spend. Strategies vary based on an organization’s population and cost drivers, but several areas are receiving greater attention, including domestic utilization, high-cost claimant management, and specialty pharmacy. At the same time, leaders are placing greater emphasis on measurable outcomes and demonstrating the value of their benefit investments.

Trends within domestic strategies:

Steering more care in-house

through plan design, communications, and meaningful cost-share differentials.

Reducing non-domestic usage

by improving awareness of the value of receiving care within the system.

Focusing on measurable engagement

as your organization scrutinizes the cost and ROI of navigation and other support solutions.

Addressing access gaps

for remote and out-of-area employees through alternative plan designs, virtual care, and other strategies.