Watchdog Group Raises Concerns Over Nonprofit Hospitals
A conservative watchdog group has begun issuing “consumer alerts” regarding nonprofit hospitals that utilize taxpayer funds and hold tax-exempt status. Their agenda, described as a “wake-up” call, aims to examine five health systems through the lenses of diversity, equity, inclusion (DEI), gender identity issues, and overall patient care.
According to a recent report, children’s hospitals affiliated with the Cleveland Clinic, Vanderbilt University Medical Center (VUMC), Henry Ford Health (HFH), Memorial Hermann Health System, and Johns Hopkins are all actively engaging in DEI advocacy and supporting transgender issues, even though some support procedures aimed at minor gender transitions.
The watchdog’s findings suggest that these hospitals are “tax-exempt beneficiaries” receiving extensive federal funding and benefits.
The Cleveland Clinic, based in Ohio, reported earning nearly $16 billion last year, with CEO Tom Mihaljevic leading the organization. The Clinic’s DEI Chief, Jackie Robertson, has stated that embedding diversity and inclusion into all aspects of their operations is essential. This has been ongoing since December 2023.
In 2024, complaints emerged about that the Clinic’s minority stroke programs and medical centers were perceived to prioritize treatment for ethnic minorities, allegedly discriminating against white patients.
The move to prohibit transgender procedures for minors in Ohio, known as the SAFE law, triggered lobbying from nonprofit health centers at the Ohio General Assembly in 2023.
Despite the law taking effect, the Cleveland Clinic continued to offer a “Guide Program for Gender Understanding, Identity, and Expression,” which supports youth exploring gender-related questions and identities.
The program states, “It can sometimes feel like the gender assigned at birth is not aligned at all.” In 2023, the Clinic articulated its commitment to sustainability and diversity, claiming that it must operate in an ecologically sound manner.
VUMC, heavily reliant on federal funds—particularly a significant $468 million grant from the National Institutes of Health (NIH)—has faced scrutiny. CEO Jeffrey Balser was reported to have earned over $6.9 million in 2023. Concerns arose when it was revealed that the institution had hidden its DEI initiatives following a presidential order aimed at ending federal funding for such programs.
Senator Marsha Blackburn (R-TN) commented on how VUMC seemed to cover up its ongoing DEI efforts by altering web access to its programs, prompting calls for compliance with federal directives. The watchdog group noted that even if VUMC claims to be “eliminating” DEI initiatives, their commitment to transparency remains uncertain.
The organization has documented that VUMC has provided treatment for gender transitions to 33 minors since 2019, with 22 of those undergoing irreversible surgeries. A medical director at the Clinic referred to these procedures as potentially financially lucrative.
In April, HFH’s approach to youth gender transition garnered attention, as it was reported that they removed a webpage promoting guidance for parents supporting transgender teens, which included warnings about the consequences of preventing such transitions.
Even though President Trump’s executive order emphasized restrictions on “gender-affirming care,” HFH reportedly continued to treat minors, having cared for at least 63 patients seeking gender transitions, eight of whom underwent surgery.
Both Memorial Hermann Health System and Johns Hopkins have exhibited similar advocacy for gender ideology, prompting the watchdog group to urge Congress to investigate federal funding at these nonprofit hospitals. Letters were sent to various congressional leaders, including President Trump and governors of several states.
Will Hild, executive director of the watchdog group, expressed the necessity for Congress to scrutinize how taxpayer money is spent within these hospitals that diverge from their primary mission of patient care. Hild emphasized the need for transparency and accountability regarding federal funds and the impact on the communities these hospitals claim to serve.
His letter addressed to Trump and various officials called for formal investigations to review the internal operations and funding of these federally supported hospitals.
