A growth agenda for Obstetrics, Gynecology & Reproductive Sciences: new service lines, recurring revenue, and a perinatal data asset built on this department's research network.
[Candidate Name], MD Candidate presentation, Department Chair · McGovern Medical School at UTHealth Houston
2
The thesis
Move from episodes of care to continuous relationships across a woman's lifespan
Grow where others are thin
Complex-pregnancy referrals from community and Methodist hospitals, the postpartum year, midlife and pelvic health, and fast-growing suburbs.
Build recurring revenue
Monthly remote monitoring, care management and membership models that 2026 payment rules now reward.
Turn data into funding
Convert the department's research network and patient diversity into grants, industry partnerships and published outcomes.
And lower the cost to serve: make the AI investments UTHealth has already made pay, and share in the savings our clinical changes create.
3
Why now
Five forces have shifted in the last 24 months
Force
What changed
What it opens
Policy
Texas Medicaid postpartum coverage extended to 12 months (effective March 1, 2024). About 1 in 4 Texas pregnancy-related deaths occur 43 days to 1 year after pregnancy; about 80% judged preventable.
A billable, accountable postpartum year
Regulatory
FDA moved to remove boxed warnings for CVD, breast cancer and dementia on menopausal hormone therapy (Nov 10, 2025); the estrogen-alone endometrial cancer warning stays. Elinzanetant approved Oct 2025.
Houston metro added 126,720 people in one year, most of any US metro. Montgomery County +4%, Fort Bend +2.5%.
New suburban demand, likely commercial-heavy
Competition
Texas Children's $200M+ Pavilion expansion (2026). Houston Methodist Cypress, Sugar Land and Woodlands builds. Memorial Hermann Katy and Cypress towers.
A window that closes in 24-36 months
Sources: Texas HHSC / HB 12; Texas MMMRC-DSHS 2024 Joint Biennial Report; FDA via Contemporary OB/GYN and Patient Care (Nov 2025); Bayer (Oct 2025); AMA CPT 2026; CMS MM14315; CoStar (2025); US Census QuickFacts; Texas Children's, Houston Methodist, Memorial Hermann newsrooms.
4
Built on strength
I will not pitch what this department already does well
Complexity
The Fetal Center at Children's Memorial Hermann, a national referral center. Level IV maternal care at Memorial Hermann-TMC. Placenta accreta and MFM fellowship strength.
Research infrastructure
NICHD MFMU Network site (2023-2030) and the only Texas institution in both the MFMU and Neonatal Research Networks. Gilstrap Center.
Reach
Memorial Hermann-TMC plus seven suburban Memorial Hermann hospitals and Harris Health LBJ, with a new 390-bed LBJ hospital including L&D opening late 2028.
Pelvic health pipeline
Urogynecology at six outpatient sites and, as I understand it, an existing referral pathway for women over 60 with incontinence.
AI platform
McWilliams School of Biomedical Informatics, TEAM-AI and SAFE centers, ChatGPT Edu, and the UT System enterprise Abridge ambient scribe agreement.
Where I see room to build
In public sources I could not find a dedicated menopause program, cardio-obstetrics clinic, postpartum-year program or REI division; suburban general OB/GYN is lighter. Please correct me.
Sources: med.uth.edu/obgyn; NICHD MFMU announcement (2023); Harris Health LBJ project status; SBMI and AI Hub (aihub.uth.edu); Fierce Healthcare (Abridge-UT System). "Room to build" items reflect public sources; internal programs may exist.
5
The market
Houston: the fastest-growing large metro, with a hard payer mix
7.90M
Metro population, July 2025
+126,720 in one year, #1 in US
35.7
Median age (US 39.2)
5.6% of women 15-50 gave birth last year (US 5.0%)
~105K
Births per year, 9-county metro
Estimate; Harris County ~65,450
+237%
Fulshear growth in 5 years
Median household income $178K
16.7%
Texas uninsured, worst in US
Harris County under-65: 23.8%
~48%
Texas births paid by Medicaid
185,000+ births (2023)
~38%
Incontinence in women over 60
Only about 1 in 4 women with UI seek care
46.5%
Texas counties that are maternity care deserts
15,287 births in deserts (March of Dimes, 2023)
Implication: fund mission care at the center with commercial and Medicare growth in the suburbs and in midlife, and with recurring Medicaid-eligible services in the postpartum year.
Sources: Census via citypopulation.de and Census Reporter (ACS 2024); CoStar 2025; Greater Houston Partnership; CultureMap/GoBankingRates (Fulshear); America's Health Rankings; SmartAsset 2025; TPR (2026); BMC Primary Care 2020 (UI prevalence and care seeking); March of Dimes Texas Maternity Care report (2023). Metro births is an estimate pending DSHS Table 9.
6
Market sizing
Where the dollars are: TAM, SAM and a realistic Year-3 share
Service line
TAM
SAM
SOM (Y3)
Basis
Midlife: menopause + pelvic floor
~$790M
~$111M
$4-5.5M
~956K women 45-64 x 20% moderate/severe VMS x $1,200; ~1.49M women 45+ x 25% UI/PFD x $1,500. SAM: catchment 50% x insured 80% x care-seeking 35%
Suburban OB/GYN satellites
~$738M
~$258M
$4.1M / site
105K births x $3,500 global professional + 2.47M women 18-64 x 60% visit x $250. SAM: west Fort Bend, west Harris, Waller, Montgomery (35%)
Concierge women's health
~$830M
~$33M
$1.8M
~277K households $200K+ x $3,000. SAM: within 25-30 min of TMC / Memorial City x 10% willing. SOM: 500 members
Connected pregnancy (RPM)
~$42M
~$10.5M
~$0.5M + avoided readmissions
105K births x $400 RPM episode; 25% at-risk share. Main value: quality and payer contracts
Tele-MFM hub, rural Texas
Not sized: grant and MCO-contract funded
~15K births/yr in maternity care deserts
All values annual and ESTIMATES built from sourced inputs (Census/ACS, KFF, NHANES-based prevalence, Monash VMS cohort, Scripps concierge pricing). Full math and assumptions in the appendix and business plan. Replace female age bands with ACS B01001 and births with DSHS Table 9 before decisions.
7
Competition
Four players, four different strategies
Houston Methodist
Baylor / Texas Children's
UTHealth + Memorial Hermann
Kelsey-Seybold
Model
Multi-hospital system, suburban delivery growth
Academic + children's flagship at TMC
Academic dept. + 8 MH hospitals + LBJ safety net
Payer-integrated multispecialty group
Scale
~14,000 births, 8 hospitals
6,000+ births at Pavilion, expanding
~7,900 births (MH-TMC + LBJ)
OB/GYN at 6 sites (incl. Woodlands, Katy, Atascocita)
Top maternal level
Level III
Level IV
Level IV
n/a
Fetal / MFM
No MFM division listed
Fetal Center, 8 MFM clinics
The Fetal Center, MFM fellowship
Not researched
Menopause
None found
Dedicated Menopause Center
None found (MH-Midi telehealth)
Not researched
Suburban moves
Cypress (2025), Sugar Land $60M, Woodlands $240M
MFM clinics in suburbs; OB/GYN in Pearland
MH Katy $282.5M, Cypress $277.5M towers
Cypress site 2026
Sources: Houston Methodist 2025 facts and newsroom; Texas DSHS maternal levels of care designations; Texas Children's newsroom; med.uth.edu/obgyn; Memorial Hermann newsroom; Kelsey-Seybold. UTHealth births undated; TCH volume figures vary by source.
8
The main competitor
Houston Methodist: strong brand, thin at the high end
Where they are strong
#7 nationally in U.S. News OB/GYN; #1 hospital in Texas for 15 years
~14,000 births across 8 hospitals; about 85% outside TMC (Willowbrook 3,086)
Pelvic floor center with Houston's first ACGME urogynecology fellowship
Digital ops: system-wide ambient AI scribe (2026), AI virtual nursing, inpatient wearables
No Level IV maternal designation anywhere; top is Level III
No MFM division or fetal therapy listed; Texas Children's lists an MFM clinic at the Methodist West address
No menopause program found
Hospital-based institute (Weill Cornell affiliate), not a medical school; second OB/GYN residency (Willowbrook) began 2025
No public postpartum RPM program or obstetric hospital-at-home found
Our position: be the place every Methodist-area OB calls for a complex pregnancy, the system that owns the postpartum year and midlife care, and the department that publishes the outcomes.
Sources: U.S. News 2026-27; Houston Methodist 2025 facts page (birth sum computed); Texas DSHS maternal levels of care list; Houston Methodist OB/GYN department pages; Form 990 FY2024 (via philanthropy.org); Houston Methodist newsroom (Ambience 2026; virtual nursing). Absence findings are from public sources.
9
Strategic choices
Where we compete, where we partner, where we do not fight
Compete
Complex pregnancy region-wide (Level IV + Fetal Center)
Midlife and pelvic health
The postpartum year
West Fort Bend / Fulshear, then Conroe
Partner
Memorial Hermann: funds-flow for suburban towers
Level I-II community hospitals: tele-MFM and transfer agreements
Industry: data and device registries
FQHCs and MCOs: screening and incentive programs
Do not fight
Suburban low-risk births head-on in Cypress
Short-term U.S. News rank
IVF scale vs. 13-site incumbents (partner first)
Reconstructive surgery volume vs. Methodist's fellowship
10
The framework
Three engines and one enabler, staged across three horizons
H1 · 0-12 months
H2 · 12-36 months
H3 · 3-5 years
Grow the front doorAccess and share
Midlife & Pelvic Health Center (5,000 SF fit-out, funded with MH); concierge pilot (150 members)
First satellite: west Fort Bend / Fulshear; MFM outreach clinics in Methodist corridors
Second satellite (Conroe / north Montgomery); LBJ 2028 volume growth
Connected careRecurring revenue
Postpartum Year: remote BP for hypertensive disorders; perinatal mental health CoCM
Cardio-obstetrics clinic; tele-MFM and eConsult hub; pelvic floor RTM
MCO value-based contracts on postpartum outcomes; home antepartum monitoring (MCO/commercial)
Discovery & dataGrants and industry
Perinatal Data Commons protocol alongside the MFMU program; sFlt-1/PlGF triage pathway
Industry RWE contracts; AI fetal heart QI network; HPV self-collection outreach
FMF vs risk-factor aspirin pragmatic trial; validated PPH prediction in production
AI & cost to serveEnabler
Referral-to-revenue dashboard; Abridge coding integrity; ERAS and OR supply scorecards
Prior-auth automation; prenatal visit redesign; central scheduling; OB safety program
Gainsharing / co-management with MH; AI-supported panel sizes
11
The portfolio
Eleven initiatives on one page
1
Suburban satellite network
West Fort Bend first; system margin with Memorial Hermann
H2
2
UTHealth Signature membership
Hybrid concierge, still bills insurance
H1
3
Midlife & Pelvic Health Center
Closed-loop continence pathway plus menopause
H1
4
The Postpartum Year
Remote BP plus cardio-obstetrics
H1H2
5
Perinatal mental health
Collaborative care model, billed monthly
H1
6
Tele-MFM & eConsult hub
Deserts, Level I-II hospitals, transfer line
H2
7
Houston Perinatal Data Commons
Biobank + RWE contracts, alongside the MFMU program
H2
8
Precision prediction portfolio
Preeclampsia, fetal heart AI, PPH
H2H3
9
Prevention at scale
Home HPV self-collection, AI cytology, oncofertility
ERAS, OR supplies, visit redesign, safety, gainsharing
H1H2
Legend
Navy front door · Teal connected care · Coral data · Gray enabler. Pro formas: 1-3; savings: 11.
12
Engine 1 · Grow the front door
Satellites where growth is fastest and UTHealth already has a footprint
Corridor
Signal
Read
West Fort Bend / Fulshear / Richmond
Fort Bend +24K/yr; Fulshear $178K income; UT multispecialty in Cinco Ranch and Rosenberg; MH Katy tower
First
Conroe / north Montgomery
+30K/yr, +4%; Woodlands crowded, north I-45 likely under-built
Second
Cypress / 290
HM Cypress, MH tower 2027, Kelsey 2026
MFM only
Each site carries an MFM outreach day so complex patients flow to the Level IV center and return home for routine care.
One 4-physician site ($M)
Y1
Y2
Y3
Clinic revenue
1.19
2.61
4.13
Clinic margin
-1.42
-1.04
-0.56
Hospital margin (30%)
0.75
1.64
2.60
System margin
-0.67
+0.60
+2.04
Capex $1.6M. Clinic-only breakeven needs ~$106 collections per wRVU. Conservative hospital case (Merritt Hawkins): Y3 system ~+$1.0M.
Inputs: AMGA 2026 OB/GYN median comp $419K and 7,681 wRVU; Houston MOB rent ~$30/SF (Matthews 2025); build-out estimated from TDLR filings; $95/wRVU, 140 deliveries per MD and $12K hospital net per delivery are ASSUMPTIONS to replace with actuals.
13
Engine 1 · Grow the front door
UTHealth Signature: hybrid membership women's health
Premium (~$5,000/yr): adds midlife program (bone, cardiometabolic, VMS), executive scheduling, pelvic health and fertility counseling
Hybrid: insurance billed for covered care; the fee covers only non-covered services (access, navigation, counseling); Medicare/Medicaid compliance review first
Mission pairing: a share of membership margin funds the postpartum year program at LBJ
Benchmarks: Scripps concierge $3,780/yr (<65); MDVIP "low four figures"; MD2 Houston $24,000. No Houston concierge OB/GYN price found.
Program economics ($M)
Y1
Y2
Y3
Members
150
350
500
Revenue
0.54
1.26
1.80
Direct costs
0.73
1.06
1.34
Margin
-0.19
+0.20
+0.46
Capex $0.5M. Operating and cumulative breakeven in Y2; ~370 members at full Y3 staffing. Y3 margin 25%. Feeds commercial deliveries, surgery and philanthropy.
Sources: Scripps concierge pricing; The Hospitalist on academic concierge; MD2 River Oaks; Monetizely concierge pricing guide. Fees, member ramp and staffing are ASSUMPTIONS.
14
Engine 1 · Grow the front door
Close the loop on the 60+ referral pathway: a Midlife & Pelvic Health Center
Menopause, integrated: HRT counseling after the 2025 label change, non-hormonal options (elinzanetant, fezolinetant with liver monitoring), bone and cardiometabolic risk
Differentiation from Baylor's center: network reach across MH suburban sites, continence plus menopause in one visit, and outcomes tracked from referral to result
Devices: leva (RCT superior to Kegels); eCoin (PMA); Revi (510(k)); AUA/SUFU 2024 guideline includes implantable TNS
$M
Y1
Y2
Y3
Revenue
1.31
2.52
4.18
Clinic margin
-0.93
-0.25
+0.32
With surgical cases
-0.63
+0.18
+1.09
Capex $1.0M. Pelvic floor PT is the margin lever. Year 4 clinic +$0.52M; +$0.74M with a cash-pay menopause tier.
Sources: FDA (Nov 2025 HRT labels; Veozah liver warning Dec 2024); Bayer (Lynkuet, Oct 2025); Urology Times and Obstet Gynecol (leva RCT); FDA PMA P200036 (eCoin); BlueWind/Contemporary OB/GYN (Revi); AUA/SUFU OAB guideline 2024. Pro forma inputs are ASSUMPTIONS.
15
Engine 2 · Connected care
The Postpartum Year: own the 12 months that Texas now pays for
Remote BP for every hypertensive disorder of pregnancy: cuff at discharge, text-based readings, nurse titration protocol
Cardio-obstetrics clinic with cardiology for chronic hypertension, cardiomyopathy and post-preeclampsia risk
Months 2-12: glucose follow-up after GDM, contraception, depression screening, primary care handoff
Billing: RPM 99453/99454 or 99445 (2-15 days) + 99457 or 99470 (10 min), + 99458; ~$73-140 per patient-month at 2026 Medicare national rates
92% vs 44%
BP obtained: texting vs office visit
Penn RCT, n=206
0.5% vs 3.7%
HTN readmissions with remote BP
UW, non-randomized
$309
Program cost per patient that is still cost-saving
Cost-effective up to $420
1 in 4
Texas pregnancy-related deaths at 43 days to 1 year
MMMRC 2024
We found no public postpartum monitoring program at Methodist. We publish our results and take them to MCOs as a value-based contract.
Sources: Hirshberg et al., BMJ Qual Saf 2018 (Penn RCT); Hoppe et al., AJOG / UW Dept OB/GYN; PMC10428007 (cost-effectiveness); Texas MMMRC-DSHS 2024; CPT 2026 and vendor rate summaries (Prevounce); Texas HHSC 12-month postpartum coverage. Texas Medicaid (TMPPM) and commercial RPM rates to be confirmed.
16
Engine 2 · Connected care
The recurring revenue stack (2026 Medicare national, approximate)
Service
Codes
Approx. value
Fit
Remote physiologic monitoring
99453, 99454 / 99445, 99457 / 99470, 99458
$73-140 per pt-month + $22 setup
Postpartum and antepartum hypertension
Remote therapeutic monitoring
98975, 98977 / 98985, 98980 / 98979, 98981
~$66-135 per pt-month
App-guided pelvic floor therapy (payer fit to confirm)
Sources: CMS CY2026 PFS final rule summary (MM14315); AMA CPT 2026; Prevounce, Tenovi and Mindbowser rate summaries; Medtronic PTNS 2026 guide; Laborie 2026 (urodynamics, mixed professional/facility); CMS PFS 2026 (G2211: 0.52 RVU x CF). Verify all amounts in the CMS PFS Look-Up Tool; Houston locality, Texas Medicaid and commercial rates differ.
17
Engine 2 · Connected care
A tele-MFM and eConsult hub: be the region's complexity partner
Who it serves
Maternity care deserts (46.5% of Texas counties, March of Dimes 2023; ~15K births a year), Level I-II community hospitals across the region, FQHCs and Harris Health clinics.
What it offers
Scheduled tele-MFM consults, 24/7 one-call transfer line to the Level IV center and Fetal Center, eConsults within 48 hours, shared RPM for high-risk patients after they return home.
How it pays
eConsult and telehealth codes, downstream transfers and fetal procedures, hospital service agreements, HRSA and state grants, MCO contracts.
Design principle: send patients home after the complex episode. Referring OBs keep their patients, so they keep referring.
Sources: March of Dimes Texas Maternity Care report (2023); Texas DSHS levels of care; CMS MM14315 (telehealth).
18
Engine 3 · Discovery & data
The Houston Perinatal Data Commons
One consented cohort linking MH-TMC, LBJ and the MH suburban network, adding remote-monitoring and imaging data, built to partner with existing Houston biobanks such as Baylor/TCH PeriBank, not duplicate them.
Collect: serum and cell-free RNA, placenta photo and pathology, ultrasound, fetal heart tracings, RPM data, EHR outcomes
Built alongside the MFMU site: reuse coordinator expertise and SOPs, under a separate IRB protocol, funding and data governance
Governed: data use agreements; federated-ready for external consortia
Who pays
Industry RWE: diagnostics (cfRNA preeclampsia tests, sFlt-1/PlGF), fetal heart AI vendors, CTG AI vendors, pelvic device registries
Federal: NIH ORWH (~$106.5M FY2026), NICHD, PCORI comparative effectiveness, ARPA-H women's health programs (Sprint: ~$110M to 23 teams)
State and philanthropy: maternal health and prevention grants
Sources: NICHD MFMU (2023-2030); ARPA-H Sprint for Women's Health; SWHR (FY2026 ORWH appropriation); Mirvie (Business Wire 2025); Thermo Fisher (2023); Northwestern PlacentaVision (2024); Baylor College of Medicine (PeriBank). A follow-on ARPA-H sprint is unconfirmed.
19
Engine 3 · Discovery & data
Precision prediction: four studies that change practice and pay their way
Study
Evidence today
Regulatory
Department role
sFlt-1/PlGF triage for inpatients with hypertensive disorders
PRAECIS (18 US hospitals; manufacturer-funded); ratio ≥40 flags severe features within 2 weeks
FDA-cleared (Breakthrough), 2023
Protocol plus cost and length-of-stay study
First-trimester FMF screening vs risk-factor aspirin
ASPRE RCT: aspirin 150 mg vs placebo in FMF screen-positive women cut preterm preeclampsia >60%; FMF vs US risk-factor selection untested head-to-head
Algorithm not FDA-reviewed
US pragmatic trial in a Medicaid-heavy cohort (PCORI, NIH)
AI fetal heart QI network
Company data: many CHDs missed on routine scans
BrightHeart 510(k)s + PCCP; Sonio 510(k)
Detection-rate registry across MH imaging sites
PPH and severe morbidity prediction
One external validation (2025 preprint, 8 hospitals): a published model fell to AUC 0.60
Uncleared decision support
Prospective silent trial, then implementation
The gap in women's health AI is not models. It is prospective validation in diverse populations. That is what this department is built to do.
Sources: Thermo Fisher (May 2023); PRAECIS; ASPRE (Rolnik et al.) and ISPOR Europe 2025 UK cost-effectiveness; BrightHeart (Business Wire, May 2025); Sonio 510(k) 2023; medRxiv 2025 external validation of PPH models.
20
Engine 3 · Discovery & data
Prevention at scale: reach women who never come in
Home HPV self-collection
First at-home cervical screening device FDA-approved May 2025 (Teal Wand). Mailed-kit outreach to under-screened Harris County women with FQHC partners and colposcopy access. NCI-fundable.
AI-assisted cytology
Hologic Genius Digital Diagnostics FDA-cleared January 2024; company reports 28% fewer false negatives for high-grade lesions. Throughput and quality study with Pathology.
Oncofertility
Texas HB 1649 (2023) requires state-regulated plans to cover fertility preservation before gonadotoxic treatment. Referral pathway with oncology; partner on IVF rather than build.
Each program produces screening volume, downstream procedures and a publishable equity outcome, and none needs new space.
Sources: Fierce Biotech and 360Dx (Teal, 2025); Hologic (Business Wire, Jan 2024); Texas HB 1649 bill analysis; Mercer employer fertility benefit surveys. CPRIT fit unconfirmed.
21
Enabler · AI
AI to revenue: make existing investments pay
Use
What it does
Metric
Referral-to-revenue loop
Tracks every referral from the 60+ pathway: scheduled, seen, treated, billed, outcome. Flags leakage and no-shows for outreach
Referral completion rate; revenue per referral
Documentation integrity
Uses the existing Abridge scribe to capture complexity accurately (MDM, G2211), with audit sampling against upcoding
E/M distribution vs benchmark; denial rate
Prior authorization
Drafts and tracks prior auths for imaging, procedures and devices
Days to authorization; staff hours
Inbox and RPM triage
Routes patient messages and out-of-range BP readings by urgency to nurse protocols
Time to response; nurse panel size
Capacity model
Forecasts demand by site and service, sets AI-supported panel sizes
Third-next-available; visits per FTE
Ambient scribes cut note time in an NEJM AI trial (up to 9.5%) with less burnout. We found no OB/GYN-specific scribe data: we can generate it.
Sources: Fierce Healthcare (UT System-Abridge enterprise agreement); NEJM AI 2025 ambient scribe RCT (Lukac et al.); CMS MM14315 (G2211). No 2026 CPT codes pay for OB-specific AI; value is indirect.
22
Enabler · Cost to serve
Ten cost initiatives, ranked by value and evidence
#
Initiative
Evidence
Annual savings (est.)
Captured by
1
Extend and audit ERAS for cesarean and gyn surgery where not standard; same-day discharge after MIS hysterectomy
$349 less per cesarean, ~0.5 day shorter stay (n=3,679, pre-post); gyn meta-analysis ~$2,129 per patient
$0.99-1.60M
Hospital
2
Gyn OR supply: standard preference cards, surgeon cost scorecards, reprocessed sealing devices, robotic stewardship for straightforward benign cases (2007-2010 cost data; re-check)
Surgeon cost feedback (JAMA Surg); reprocessing saved US facilities $465.8M in 2023 (AMDR industry survey)
$0.36-1.11M
Hospital
3
Prenatal care redesign: fewer low-risk visits, hybrid virtual schedule, APP and RN-led routine care
Central scheduling, automated reminders, predictive overbooking
No-show cost ~$196 per missed visit (BMC HSR, 2008 data)
$0.15-0.78M capacity
UT Physicians
5
Fewer NTSV cesareans; extend the Ob/Gyn Hospitalist division's model across suburban MH sites
California: 26.0% to 22.8%, no added neonatal harm (JAMA)
$0.25-0.43M
Mostly payers
6
Prior-auth automation and denial prevention
Denial rework ~$25 per claim (MGMA-attributed, ~2017)
$0.16-0.43M
UT Physicians
7
OB safety program: AIM bundles, simulation, EFM certification
Yale: claims payments $50.7M to $2.9M across two 5-year periods (single site)
$0.05-0.24M + claims
UT liability plan, hospital
8-10
Office hysteroscopy; video interpreting and scribe/transcription consolidation with Abridge; postpartum remote BP
Site-of-service and readmission data
$0.21-1.14M
Mixed
Sources: ERAS cesarean cohort; gynecologic ERAS meta-analysis; JAMA, PMC8080226 (California NTSV collaborative); Pettker et al. (Yale OB safety); MiPATH; AMDR 2024; BMC Health Serv Res 2015; Becker's/MGMA. All savings are ESTIMATES for ~8,000 deliveries and 400-700 hysterectomies per year; several sources date from 2008-2016. Replace with department and hospital actuals.
23
Enabler · Cost to serve
Most savings land with partners, so we negotiate the share up front
$1.4-2.8M
Hard cash to hospitals
ERAS, LOS, OR supplies
$0.3-1.2M
Cash to department and UT Physicians
Prior auth, interpreting, scribe consolidation
$0.3-0.9M
Payer savings
NTSV cesareans, office procedures
$2.4-7.2M
Total per year, all parties
Remainder is freed capacity
How the department shares in it
Co-management or gainsharing with Memorial Hermann on cost per case, LOS and quality, written into the same funds-flow agreement as the satellites
Value-based MCO contracts that pay for NTSV, readmission and postpartum outcomes
Liability: UT's self-insured plan has used partial experience rating (confirm current formula), so safety gains can return through premiums
Capacity: freed slots are filled by the growth engine, which turns savings into revenue
Cost work and growth work are one negotiation: the department brings the clinical change, the partners share the margin it creates.
All figures are ESTIMATES; savings are reported separately and are not included in the revenue pro forma totals. Confirm current ERAS status, NTSV rates, supply cost per case, interpreter and scribe spend, and UT liability premiums (2002 Regents experience-rating policy) before decisions.
24
The economics
Three modeled initiatives: $3.1M of capital, system-positive in Year 2 with a Memorial Hermann funds-flow agreement
■ Satellite■ Signature membership■ Midlife & Pelvic System contribution, $M
Initiative
Capex
Y3 system
Breakeven
Satellite (4 MD)
$1.6M
+$2.04M
Y2 (system)
Signature membership
$0.5M
+$0.46M
Y2 (operating)
Midlife & Pelvic
$1.0M
+$1.09M
Y2 (system)
Total
$3.1M
+$3.59M
Cumulative +$3.08M by Y3 (after depreciation)
Clinic-only (department)
Y1 -$2.54M · Y2 -$1.09M · Y3 +$0.22M
Conservative case (Merritt Hawkins benchmark for the satellite): Y3 total ~+$2.5M.
Upside not in totals: connected care (~$0.5M direct RPM in Y3 plus avoided readmissions), eConsults, industry RWE contracts and grants.
Contribution margin before institutional overhead (dean's tax, central admin); includes depreciation of build-out. Years run from each opening; the satellite opens in H2, so calendar-year totals will be lower in Years 1-2 and reach the Year-3 run rate later. Inputs are ASSUMPTIONS (AMGA 2026, Houston MOB rents, TDLR filings, Scripps pricing, Merritt Hawkins surveys); replace with UT Physicians and Memorial Hermann actuals.
25
The economics
What could go wrong, and what we watch
Lever
Breakeven / sensitivity
Satellite collections per wRVU
Clinic-only breakeven ~$106; at $85 loses ~$0.70M/yr; at $115 earns ~$0.30M
Hospital downstream value
Base $2.2M per MD; conservative $1.35M still positive in Y3
Signature membership
Breakeven ~370 members at full Y3 staffing; each 100 members ~ $0.36M revenue
Funds-flow risk: negotiate the Memorial Hermann agreement before signing a lease
Equity optics: membership margin funds the postpartum year at LBJ
Recruiting: urogynecologists (URPS), cardio-OB and menopause-certified clinicians are scarce; start search in month 1
Payer acceptance: RTM for pelvic floor and Texas Medicaid RPM rates must be confirmed
AI safety: audit sampling on scribe notes; silent trials before any prediction model goes live
Sensitivities from the pro forma model (business plan). Medicare 2026 conversion factor $33.4009 includes a temporary +2.5% that expires after 2026 (CMS; SIR).
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The economics
How it gets funded: capital from five sources, not one
Memorial Hermann
Funds-flow or JV for satellites and the midlife center; suburban towers need service lines
Philanthropy
Midlife center naming; Signature members as donors
Federal
NIH ORWH / NICHD, PCORI, ARPA-H, HRSA for rural tele-MFM
MCO incentive programs (e.g., Community Health Choice OB 2026); value-based postpartum contracts
Department capital at risk is limited to H1 programs; build-outs start after partner agreements are signed.
Sources: Community Health Choice 2026 STAR/CHIP OB Provider Incentive Program; SWHR (ORWH FY2026); ARPA-H; Memorial Hermann newsroom (Katy and Cypress expansions).
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Execution
The first 100 days, Year 1, and Years 2-3
First 100 days
Listening tour: every division, MH leadership, LBJ, residents
Baseline: 60+ referral completion; collections per wRVU; deliveries; cost per case, LOS and NTSV rate
Extramural funding; industry contracts; publications from department programs
3+ new funded studies
People
Faculty retention; burnout scores; recruitment fill rate; resident outcomes
Burnout below baseline
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Execution
None of this works without the people
Recruit
Urogynecologists (URPS), cardio-obstetrics, menopause-certified clinicians, APPs and pelvic floor PTs. Joint recruitments with cardiology and psychiatry.
Train
Residents rotate through the postpartum year, midlife center and tele-MFM hub. Prepare the program for the new LBJ hospital in 2028.
Sustain
Ambient documentation to cut after-hours work; protected time for program leads; transparent incentive tied to the scorecard.
Every initiative has a faculty lead with protected time, a budget, and a seat at the quarterly review.
Complexity is our moat. Continuity is our growth.
Own complex pregnancy for the region. Own the postpartum year and midlife care. Turn this department's research platform into the evidence everyone else needs.
Thank you. Questions and discussion.
A1
Appendix
Assumptions to replace with actuals before decisions
Input
Value used
Replace with
Metro births
~105,000/yr (estimate)
DSHS Vital Statistics Table 9 by county
Women by age band
MSA x 50.4% female x assumed age shares
ACS table B01001, 9 MSA counties
Collections per wRVU
$95 (tested $85-125)
UT Physicians OB/GYN actuals
Hospital net per delivery / gyn case; contribution
$12,000 delivery; $10,000 gyn case (satellite); $12,000 urogyn case (midlife); 30%
Memorial Hermann actuals and funds-flow terms
Deliveries per general OB/GYN
140 per year at maturity
Department actuals
Support staff; malpractice
3.5 FTE per MD at $58K; $40K per MD
UT Physicians staffing model; UT self-insurance
Concierge fee and ramp
$3,000 average; 150 / 350 / 500 members
Market test with current patients
Midlife center productivity
PT 11 visits/day x $110; menopause 20 visits/day x $160