Hidden Costs: What’s Behind Texas Hospitals’ $122 Million Surge?

Doctor's tools

Texas hospitals experienced a dramatic cost increase in November 2024 from treating illegal immigrants, highlighting the growing financial strain on healthcare facilities.

Quick Takes

  • Texas hospitals incurred over $121 million in costs in one month due to illegal immigrants.
  • The data resulted from Gov. Abbott’s executive order demanding financial transparency.
  • 31,000 visits contributed to inpatient discharges costing over $62 million.
  • Criticism mounts over federal immigration policies increasing the financial burden.

Rising Costs Under Executive Order

November 2024 marked a significant financial milestone, with Texas hospitals reporting an increase of $122 million in costs due to treating illegal immigrants. This rise resulted from Gov. Greg Abbott’s executive order demanding hospitals track expenses associated with providing care to individuals not lawfully in the U.S. Data collection and reporting are part of ongoing efforts to quantify the financial effects of immigration on healthcare services in the state.

The Texas Health and Human Services Commission has spearheaded the initiative, anticipating detailed annual reports by January 2026. The commission intends to use these figures to assess immigration’s financial footprint and possibly seek federal reimbursement. Governor Abbott emphasized data collection’s importance in holding the federal government accountable.

Specific Financial Impact

The executive order, introduced in August 2024, mandates quarterly hospital reporting on costs linked to treating illegal immigrants. Initial results showed 31,012 visits in November alone, with inpatient care surpassing $62 million in expenses and emergency room costs adding over $36 million. Governor Abbott criticized the Biden-Harris Administration’s perceived open border policies, attributing increased state costs to ineffective federal immigration strategies.

“Texans should not have to shoulder the burden of financially supporting medical care for illegal immigrants,” Abbott remarked.

Despite these financial pressures, hospitals continue to comply with federal law, ensuring that patients’ legal status inquiries do not influence the quality of care provided. As mandated by law, medical facilities remain open to all, irrespective of their residents’ capacity to pay.

The Larger Picture

Governor Abbott’s push for cost transparency aims to pressure the federal government towards reimbursing the state’s healthcare spending. With 558 out of 600 hospitals meeting the submission deadline, the data gathering reflects a detailed approach to understanding and easing foreign nationals’ financial impact on local services. State Rep. Mike Olcott supports legislative measures that further define the executive order’s scope to prevent more rural hospital closures attributed to uncompensated care.

Despite concerns over illegal immigrant care costs, proponents of the initiative claim that more widespread data availability could clarify broader financial repercussions. This includes a clearer picture of what portion of uncompensated care is attributable to the undocumented population versus the uninsured Texas citizens. As this monetary endeavor develops, the focus remains on balancing accessibility with cost control.