Fixing health care, the Texas Way

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Fixing Texas health care through competition

healthy markets health care newsletter lead image

Health care in Texas isn’t just getting more expensive. It’s getting less competitive and less transparent.

That’s why this week we are looking at the top issues, what the data is saying and how Texas is working to address health care access and affordability.

The problem: Not enough competition

wheelchair in hospital

Over the past 20 years, hospital, insurer and private investor mergers and acquisitions, both horizontal (hospital to hospital) and vertical (hospital to doctor to insurer), have fundamentally reshaped the market.

The result? Prices go up, choice goes down and quality stays the same.

Here’s what the data tells us

health care healthy markets young family

The research consensus is clear:

Why does competition matter?

health care costs go up

This isn’t just a health care problem. It’s a market failure.

  • Texans are paying more for fewer choices. Hospital markets like those in Houston and Dallas are becoming more concentrated and prices are often hidden from patients and employers alike.
  • Price variation is massive — not just between cities, but within them. The same procedure can cost three times as much at one hospital as another, with no difference in outcome​.
  • Employers and public plans are footing the bill and those costs get passed on to workers and taxpayers.

🗣️ What Texans are saying

Polling confirms that voters are deeply concerned and ready for action:

  • 91% agree Texans should know who owns their doctor, hospital and insurer.
  • 87% are concerned about investment groups influencing medical decisions.

This isn’t a partisan issue. It’s a trust issue. Texans want transparent, accountable and fair markets.

The Texas 2036 approach: Healthy Markets

healthy markets doctors hands

Texas 2036 has developed a reform framework grounded in one principle: make markets work like they’re supposed to.

We call it the Healthy Markets approach, and it focuses on three pillars:

1. Informed: Markets don’t work without information.

We’re working to:

  • Expose hidden ownership structures so patients and regulators know who controls their care.
  • Make pricing data usable—so patients, employers and policymakers can see where their money is going.
  • Modernize billing systems and remove loopholes that let facilities charge more simply because of who owns them.

2. Competitive: We need more options, not fewer.

We’re supporting reforms that:

  • Expand the number and types of providers, including telehealth and non-physician clinicians.
  • Give regulators the ability to review proposed consolidations before they reshape the market.
  • Target anti-competitive contracting practices that limit insurer flexibility and trap patients in narrow networks.

3. Engaged: Consumers and employers should have the tools and incentives to choose value.
  • That means allowing insurance plans to reward patients for choosing lower-priced, higher-quality providers.
  • It also means removing state barriers that block these smart incentives from being implemented.

🔗 Explore the full framework

TXLege 2025: Policy in motion

Texas Capitol Great Walk

This session, a slate of targeted bills seeks to modernize the rules of the game so that Texas health care markets reward value, not volume.

Improve billing transparency by addressing facility fees

Facility feesHouse Bill 2556 / Senate Bill 1232
Rep. James Frank, R-Wichita Falls & Sen. Kelly Hancock, R-North Richland Hills

🔎 Shining a spotlight on facility fees: In the Houston area, the issue of the surprise facility fee is garnering greater attention. This Houston Chronicle piece documents impacts of rising out-of-pocket costs attributable to these fees.


Incentivize greater use of high-value providers

🏥 Patient incentives SB 926 / HB 1959
Sen. Hancock & Rep. Frank

The Opportunity of Price Variation: Widespread differences in prices can create an opportunity for large savings, but only if employers and patients are given the information they need and the appropriate incentive to seek them out.


Protect competition with pre-merger alerts

🩺 Merger reporting HB 2747
Rep. Frank


Provide patients and policymakers with information on ownership and control

🧑‍⚕️ Transparency of Ownership HB 4408 / SB 1595
Rep. Jay Dean, R-Longview & Sen. Hancock

More health care data you need to know:

UTHealth photo

Source: UT System

Unlocking metrics to contain health care prices

Fully funding the All-Payer Claims Database gives policymakers the tools to conduct more Texas-specific research to make our state benefit plans a market-leading example that promotes high-quality, low-cost providers.

🔍 Learn more about the APCD.

HPSA mapSource: Texas Demographic Center and Texas Department of Health and Human Services

A growing need for more health care workers

The current challenge: Right now, 224 of Texas’ 254 counties are designated health professional shortage areas!

A TXLege solution: Increase provider supply

🧑‍🎓 High school-to-hospital pipeline HB 2189
Rep. Donna Howard, D-Austin

👨‍⚕️ Advanced Practice Registered Nurses HB 3794 / SB 1859
Rep. Drew Darby, R-San Angelo & Sen. Mayes Middleton, R-Galveston

Shaping a better health system with TX2036 data

healthy markets health care newsletter photo collage

Texas 2036 has been pulling together research to ensure Texans get better access, lower costs and a system that works. Our research includes:

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