Court Rules Hospital District Funding Legal | Austin News

After nine years of legal battles, a Texas appeals court has dismissed a lawsuit challenging whether a hospital district can annually fund Dell Medical School with $35 million — money critics argue was misused for non-medical purposes. The court sided with Central Health, ruling no evidence showed the payments were illegal, reversing a lower court’s decision. The dispute began in 2017 when taxpayers sued, claiming funds should only support direct care for low-income patients. Plaintiffs’ attorney plans to seek a rehearing at the Texas Supreme Court, arguing the appellate court ignored evidence that much of the money went toward administrative costs rather than patient care. Central Health’s CEO hailed the ruling as validation of their authority and investment, noting medical school staff actively provide care within their system — even if not directly tied to those visits. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/f3890ccafd3ea2ba