Employee Benefits Summary for the Hospital Industry

Learn more about the types of benefits hospitals offer across medical, short term disability, long term disability, life, vacation and leave and financial incentives.


Did you know about 72% of Hospitals offer medical insurance?

Complete Benefits Guide:

  • Medical
  • Disability
  • Life
  • Sick & Vacation
  • Retirement


Industries in the Hospitals subsector offer a variety of medical, diagnostic, and treatment services. This includes physicians, nursing, and other health services, providing both inpatient and outpatient medical care.

From general medical and surgical hospitals to psychiatric and substance abuse hospitals, competition for qualified, competent employees has never been higher. However, staffing approaches can have a significant influence on benefits and structure, with some part time shifts being the norm. Additionally, a higher rate of females in child bearing age means a higher demand for quality short term disability benefits as well as maternity and paternity leave benefits. Oftentimes, additional education is required and student loan assistance may be a differentiator. Work related injuries can be more common as there is physical labor involved in many of the roles dealing with patient care.

As active participants in the healthcare sector, those in this industry are likely to be somewhat higher users and have a higher general health education.

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The Hospital Industry Employment Summary

As of January 2021, there were 7,000 hospitals nationwide, employing over 6 million people. Each hospital is quite large, with an average of 855 staff, and the industry is female-dominated, with only 26% of employees identifying as male. The median employee age is 42 years old.

Hospital Industry Benefits Comparison

72% Offer Medical Benefits

What percentage of hospitals offer medical insurance?

  • 72% of hospital employers offer their employees access to medical insurance. This is above the national average of 69%.
  • These businesses provide an average monthly employer premium of $1,118 for family coverage. This is in line with the national average of $1,121.
  • Additionally, these businesses provide an average monthly employer premium of $484 for individual coverage. This is also right in line with the national average of $458
37% Offer Short-Term Disability

What percentage of hospitals offer short and/or long-term disability insurance?

37% of hospitals offer short-term disability insurance, and 39% provide a long-term disability option. This is lower than the national average of 42% and 34%, respectively.

60% Offer Life Insurance

What percent of hospitals offer life insurance?

60% of hospitals offer life insurance coverage. This is slightly above the national average of 56%.

26% Offer PaidFamily Leave

Do hospitals provide access to paid family leave?

  • 26% provide access to paid family leave.The national average is 20%.
  • 91% provide access to unpaid family leave. The national average is 88%.
  • 67% offer consolidated leave plans. The national average is 44%.

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In my 25 years of benefit experience, I have never seen information like this

– Cassie H, Benefit Manager

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Generally speaking, hospital employers are in line with the national standard for providing all-inclusive hospital employee benefits packages. There are a few opportunities for improvement, such as providing more in-depth short-term and long-term employee benefits packages and increasing the number of paid vacation days. Once these adjustments are made, hospitals will notice how strong benefits packages are a prime factor in attracting staff and retaining them in the future.