CHICAGO, Nov. 12, 2025 - Aon plc (NYSE: AON), a leading global professional services firm, reports that managing rising healthcare costs has surpassed talent retention as the top strategic priority for U.S. hospitals, according to the firm’s twentieth annual Benefits Survey of Hospitals. The 2025 report reflects responses from 155 health systems, representing more than 1,500 hospitals and 3.6 million employees nationwide.

U.S. employer healthcare costs have surged to historic highs, with hospitals at the center of the affordability crisis. This year, 93 percent of health systems identified cost management as their primary concern, with median per employee per year (PEPY) spend rising 9.2 percent over the last year – a trend driven by inflation, high-cost therapies and the growing complexity of chronic conditions. As hospitals adapt their offerings to manage costs, it has become increasingly important that they ensure employees truly understand the value of their benefits.

“This year’s survey underscores the ongoing financial pressures health systems face and highlights the industry’s commitment to supporting workforce needs and wellbeing,” said Sheena Singh, national healthcare industry practice lead for Aon. “Hospitals must do more than just manage costs – they must clearly communicate the value of their total rewards to employees. When organizations articulate the true worth of their benefits, it maximizes the impact of every investment and strengthens workforce engagement and retention, especially in times of significant change.”

Additional key findings include:

• Employee Value Perception: Only 14 percent of health system employers believe employees understand the value of their total rewards package, a significant drop from 25 percent in the prior year. To ensure benefits investments are meaningful and deliver maximum ROI, organizations need to balance robust employee listening with targeted modifications to communications and engagement strategies.
   
• Affordability and Inclusion: Health systems continue to focus on employee affordability, with tactics such as salary-based contributions, company-paid supplemental benefits and financial needs programs for low-wage earners. There is also increased emphasis on meeting the needs of a diverse, multigenerational workforce and ensuring benefits are inclusive.
   
• Pharmacy Cost Management: The cost of GLP-1 medications for diabetes and weight loss now represents 50 percent of the top 10 drugs by spend. Health systems are implementing exclusions, restrictions, clinical and utilization management programs, and tighter formularies to manage pharmacy costs, while biosimilars are beginning to reduce spend on legacy drugs.
   
• Strategic Plan Design: Nearly three-quarters of health plans offer at least three tiers of coverage (domestic, in-network and out-of-network), with 63 percent of health systems now offering high-deductible health plans, though enrollment in them remains lower than other plans offered. As hospitals hire more talent outside of their patient service area, 33 percent offer a separate plan for “out-of-area” employees. Domestic steerage to the health system’s facilities, physicians and pharmacies continues to be integral to cost management and clinically integrated care strategies.
   
• Wellbeing and Ancillary Benefits: Family-building benefits, paid parental leave and expanded mental health support are increasingly common, with 50 percent of respondents offering employees a financial incentive to engage with wellbeing programs.

Over the last 20 years, hospital-sponsored benefits have undergone a dramatic transformation underpinned by a multitude of legislative mandates and shifting workforce expectations. PEPY costs have more than doubled and the shift to self-insured plans is now nearly universal. High-deductible health plans, once unheard of in the sector, are now offered by nearly two-thirds of health systems.

“Looking back over the last two decades, the hospital benefits landscape has fundamentally transformed,” said Singh. “Today’s hospitals are more agile, embracing innovative strategies to balance rising costs, workforce needs and regulatory change. The move toward inclusive, flexible and affordable benefits is a clear result of a deeper commitment to supporting the wellbeing and retention of employees.”

About the Survey:
Aon’s Benefits Survey of Hospitals has provided actionable data and benchmarking for hospital employers for 20 years. The survey is offered at no cost to participating health systems, with regional benchmarking and a complimentary tailored follow-up session available. The 2025 survey reflects data from 155 health systems, representing over 1,500+ hospitals and 3.6 million employees.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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