Iger made the announcement at Texas Children's Hospital.
Though hospitals worldwide will benefit from the initiative, Texas Children's will be the first to work with the company.
"We chose Texas Children's Hospital because they are global leaders in pediatric care as well as the largest children's hospital in the country and their dedicated healers share our commitment to support the emotional well being of young patients and their families," Iger said.
WATCH: Disney CEO Bob Iger makes the big announcement
Iger said that the company has also assembled a Team of Heroes, which is a group of patient care experts to help Disney understand various aspects of the patient experience such as what causes the most stress for parents.
"We're going to use our beloved characters and renown creativity to bring our timeless stories to life in innovative ways and hopefully transform a hospital stay into a warmer, more personalized environment for each patient," Iger said during the announcement.
Texas Children's Hospital also presented Iger with a special picture.
WATCH: Iger discusses the history of the project with Gina Gaston
Commissioned by Walt Disney himself, it's a depiction of Texas Children's Hospital while it was under construction in 1952.
The hospital opened two years later in 1954.
The Walt Disney Company is the parent company of this ABC station.