Competing for Fewer Patients: How Pediatric Hospitals Adapt Amid U.S. Population Decline
U.S. birth rates just hit a record low, and pediatric hospitals are fighting for fewer patients. From bold partnerships to specialty care, here’s how they’re adapting to demographic decline.
// By Althea Fung //
The math is simple and sobering: birth rates in the United States have been steadily declining for more than a decade. Last year, the general fertility rate in the U.S. declined from 54.5 births per 1,000 females ages 15–44 in 2023 to 53.8 in 2024.
Although nationwide births increased by 1 percent, rising to 3.6 million, according to provisional CDC data, this small uptick follows a broader trend. Births dropped 16 percent between 2007 and 2023, and the general fertility rate declined 22 percent over the same period.
Birth rate, by age of mother: United States, 2023 and 2024 (Source: CDC, Births in the United States, 2024)
The ripple effects are felt across industries, but for pediatric hospitals, which depend on a steady flow of young patients, the demographic shift raises a pressing question: How do you compete for fewer children?
Michael Pou, managing director, Huron
“With birth rates declining nationally, [pediatric hospitals] are preparing for the pressure that comes with a smaller patient population,” says Michael Pou, a managing director at Huron, a consulting agency that advises children’s hospitals and health systems nationwide. “I have heard some hospitals say their volumes are softer, although it really depends on the market. But as birth rates continue to fall, that variability could turn into a bigger challenge for pediatric providers.”
Rather than waiting for demographic tides to shift, Pou says it’s imperative for children’s hospitals to rethink how they grow, partner, and differentiate in a tighter market.
Read on to learn about three trends that are shaping strategies for children’s hospitals.