Federal Crackdown on Gender-Affirming Care Expands with DOJ and FTC Investigations
The U.S. Department of Justice has issued nearly 20 subpoenas to clinics and drug manufacturers involved in gender-affirming care, citing investigations into drug marketing and potential federal violations. This move follows escalating actions from the Trump administration, including an executive order to cut funding from hospitals providing trans care to minors, FBI tipline solicitations, and CMS data requests. The FTC is also exploring allegations of deceptive practices related to gender-affirming care, with critics warning of politicized overreach into clinical settings and rising pressure on providers.
Key Takeaway: Hospitals should prepare for regulatory scrutiny, funding risks, and legal exposure related to gender-affirming care. Institutions may face subpoenas, reputational pressure, or care delivery disruptions, especially in states with heightened enforcement activity. Hospital leaders should review compliance protocols, ensure legal readiness, evaluate public-facing policies, and coordinate with university or system leadership to navigate political, operational, and reputational risks.
Measles Outbreak Reaches Post-Elimination High, Raising Alarm Among Public Health Leaders
The U.S. has reported more measles cases in 2025 than in any year since the disease was declared eliminated in 2000, with over 1,280 confirmed infections across 38 states. The largest outbreak began in a Mennonite community in West Texas and has since spread regionally, fueled by falling vaccination rates, weakened public health responses, and global resurgence. Public health experts warn the U.S. is on the brink of losing its measles elimination status, an outcome once narrowly avoided in 2019.
Key takeaways: Hospitals, particularly children’s hospitals and rural providers, should prepare for increased measles-related admissions, infection control burdens, and operational stress. Systems should assess MMR vaccination tracking, coordinate with local public health entities, and anticipate possible staff shortages, reputational scrutiny, and rising demand for pediatric and critical care. Leadership may also need to counter misinformation and bolster community vaccine outreach in low-coverage areas.
Planned Parenthood Clinics Reject Medicaid Amid Legal Fight Over GOP Health Law
Planned Parenthood affiliates in Washington, D.C., and Colorado have stopped accepting Medicaid following a provision in President Trump’s new tax-and-spending law that blocks federal reimbursements to certain providers. The move has prompted a federal lawsuit, a temporary injunction, and nationwide confusion as affiliates respond differently to the unfolding legal situation. Advocates warn the policy could force closures of nearly 200 health centers, restricting access to routine and reproductive care for low-income patients.
Key Takeaway: Hospitals and safety-net providers should prepare for potential patient surges and capacity strain if Planned Parenthood sites reduce services or close. Systems in affected regions may see increased demand for sexual, reproductive, and preventive care. Leadership should assess potential partnerships, community navigation support, and policy implications, particularly in states where Medicaid populations rely heavily on Planned Parenthood for non-abortion services like cancer screenings, contraception, and STI testing.
Supreme Court Reinstates Trump Administration’s Federal Layoff Plans, Including at HHS
The Supreme Court has allowed the Trump administration to proceed with agency restructurings and reductions in force (RIF), including mass layoffs at the Department of Health and Human Services. The decision lifts a lower court injunction and enables the administration to continue implementing executive orders and internal memos aimed at downsizing the federal workforce. Liberal Justices Ketanji Brown Jackson and Sonia Sotomayor raised concerns about executive overreach and lack of congressional involvement, but the Court’s order leaves the lower court free to consider the legality of the specific plans.
Key Takeaway: Hospitals and healthcare organizations should prepare for disruptions stemming from staffing cuts at HHS, including slower grant processing, regulatory delays, and reduced support for Medicaid, Medicare, and public health programs. Loss of experienced personnel and restructuring under Secretary Robert F. Kennedy Jr. may affect program continuity and agency responsiveness, especially for safety-net providers and federally funded health initiatives.
On the Horizon
Brian Christine Nomination Hearing Set for July 16: The Senate will hold a nomination hearing on July 16 for Brian Christine to become Assistant Secretary for Health at HHS. If confirmed, Christine would oversee key public health offices, including the Office of Population Affairs (which administers the Title X program), the Office of the Surgeon General, and the Offices on Women’s and Minority Health.
Why it matters for hospitals: Christine’s record includes opposition to abortion, support for broad religious exemptions in care, and criticism of reproductive health access, raising red flags for hospitals delivering comprehensive services. If confirmed, he could shape federal guidance affecting Title X providers, women’s health programs, and public health strategy, with potential implications for hospital compliance, funding eligibility, and care delivery standards.
