Disgaea 2: Cursed Memories/Hospital prizes

During typical story-oriented gameplay it is the resurrections that usually lag behind the rest. If you play turn-based strategies like I do, then you'll most likely find yourself with a World or Star Muscle, but only having obtained Sophia's Mirror or the Pravda Pendant simply because your party's too good at not getting themselves killed off. If this is the case, then go ahead and go on a bit of a killing spree on the next couple maps so you can get yourself those long-awaited and well-deserved high-end emblems (and the generally worthless potions too!). Prinnies are the best for the task since resurrecting them is nearly free.

Due to the nature of the Hospital rewards, Disgaea 2 is a game best played with lots of expendable characters as part of your basic strategy. Don't be afraid to lose a couple characters per map. This is especially true in the Item World, where you can pull out a fresh set of 10 combatants on every level, regardless of how many just died on the previous level. Not only will this net you the better items from the Hospital sooner, it'll also allow you to fight deeper into Item world by conserving the HP/SP of your strongest characters for the later levels and Item Bosses, which in itself results in stronger items and faster overall progression.

Exploiting the Hospital
Every time you leave and re-enter the Prizes screen, the items are re-generated. What this means is that you can keep leaving and re-entering until you get a Rare item, and it usually only takes between a handful of seconds (at best) or just over a minute (at the very worst) to have your new prize come up as Rare -- netting you both better stats and better resale value. Note that the hospital DOES give out legendary items. They are very rare to show up on the list though.

The hospital can be by far the cheapest and quickest way to obtain some of the most useful items in the game. The best time to take advantage of the hospital is during Chapter 1, since all hospital costs are offered at a 50% discount. Hospital prices are normal for Chapter 2, and increase in 10% increments for each additional chapter. During Chapter 1 it is possible to obtain all items for approximately 650k total costs, while the same achievement in Chapter 6 costs about 1.3 mil HL.

There are some ways to exploit the Hospital, a time consuming way is to simply equip an item which boosts a characters HP, then remove it. The character's max HP will rise and then lower, but the character's Current HP will only be able to lower, not raise (it appears this may have been implemented to prevent people from abusing HP boosting items to avoid paying the hospital). A great way to squeeze the hospital out of its goodies is to simply outfit as many of your characters with HP boosting items, enter a map and throw a Boss level or humanoid enemy onto the base panel. Despite the level of said target, the base panel will break and KO all of your characters (untested if Resurrecting counts as HP).

Prizes
The hospital doles out its prizes based on the amount of HP and SP healed, and the number of full resurrections: