This analysis of NZ public hospital discharge data from 2000 through 2014 examined the effectiveness of using hospitalisations to identify children at subsequent risk of acute rheumatic fever (ARF). The national ARF prevention programme has introduced funding to improve housing. As the study researchers explain, effective tools are needed for targeting high-risk children at risk of ARF, so that all interventions yield the greatest benefit. Three potentially avoidable hospitalisation (PAH) groups were investigated, including diseases thought to be influenced by housing: (i) PAH conditions associated with the housing environment (PAHHE) group; (ii) the Crowding group; and (iii) the Ministry of Health (MoH) group. Nearly one‐third of ARF cases had previously experienced a PAH as children. Sensitivity for detecting future ARF ranged from <5% (MoH group) to 27% (PAHHE group). The number needed to screen to identify one ARF case ranged from 502.4 with the PAHHE group to 707.5 with the MoH group.