Texas probes two Reddy-owned hospitals over alleged birth-tourism advertising

Governor Greg Abbott instructed the Texas Health and Human Services Commission to launch an inquiry into Mission Regional Medical Center and Knapp Medical Center after allegations surfaced that the hospitals promoted "birth packages" abroad to attract foreign nationals seeking U.S. citizenship for their children. The commission’s report, citing billboards in Mexico that referenced a now-defunct website, was sent to Attorney General Ken Paxton, who announced his office would pursue any illegal birth-tourism activity.

Prem Reddy, founder of the Prime Healthcare Foundation that owns both hospitals, has previously received a presidential lifetime-achievement award. Hospital spokespeople described the advertising as a brief, low-impact effort intended to inform local underserved communities, not to solicit unlawful travel. They stressed that neither facility supports or profits from birth-tourism schemes. The governor’s executive order also empowers state agencies to sanction entities found violating the law, including license revocation and exclusion from state contracts.