USC Health Programs Maintained Care Access
The health systems are continuing their gender-affirming services despite shifting federal funding guidelines.
Updated on Oct. 13, 2026 in Healthcare
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Keck Medicine of USC and USC Student Health have maintained their gender-affirming care programs, distinguishing them from other regional providers that have shuttered similar departments. This stability allows for continued hormone therapy and surgery consultations for students and patients in the Los Angeles area.
Why it matters
The closure of the Children's Hospital Los Angeles Center for Transyouth and Development highlights the tension between providing specialized care and complying with federal restrictions on grant usage. Operators must navigate these tightening regulatory frameworks to ensure long-term service continuity.
The gender-affirming care program at Keck Medicine of USC has earned the LGBTQ+ Healthcare Equality Leader designation 8 times, an increase from 6 designations held by 2022. The program itself has operated continuously since 2013.
The players
Keck Medicine of USC
An academic medical system that provides integrated care across multiple specialties and hospital locations.
USC Student Health
The primary healthcare provider for University of Southern California students operating the Engemann Student Health Center.
Children's Hospital Los Angeles
A pediatric academic medical center that closed its Center for Transyouth and Development following federal funding restrictions.
Aetna
A health insurance provider that currently underwrites the Student Health Insurance Plan offered to USC students.
Health Resources and Services Administration
A federal agency that oversees grant funding and provided the notice restricting usage for specific medical programs.
The details
USC maintains service delivery by coordinating care across family medicine and surgical specialties through the Engemann Student Health Center and affiliated hospitals. The Student Health Insurance Plan administered by Aetna continues to provide coverage for hormone therapy and gender-affirming surgeries, offsetting some patient cost concerns. Conversely, the Children's Hospital Los Angeles shuttered its specialized center five months after receiving a federal notice prohibiting the use of certain grant funds.
Timeline
2013: The gender-affirming care program at USC was founded.
2022: The program had earned 6 LGBTQ+ Healthcare Equality Leader designations.
February 2026: USC received a federal statement regarding the usage of grant funds.
June 2026: USC Student Health and Keck Medicine of USC received the LGBTQ+ Healthcare Equality Leader designation.
August 2026: The federal government released a rule restricting Medicaid and CHIP funding for certain gender-affirming treatments.
Market Landscape
This development follows the August 2026 federal rule restricting Medicaid and CHIP funding for gender-affirming treatments. The shift marks a departure from the previously established standard of care as institutions reevaluate their grant eligibility against operational mandates.
Operators in the healthcare sector should review all grant-funded service lines to identify exposure to recent federal funding restrictions. Maintaining financial independence from restricted pools remains the primary strategy for ensuring continuity of sensitive clinical services.
The takeaway
The recent closure of specialized units at regional facilities highlights the financial risk that federal grant mandates pose to specialty care providers. Administrators should audit their current funding agreements to ensure they do not conflict with shifting executive and federal agency orders.
Further reading
For additional context on local industry standards, visit the Healthcare section.
Source note: This article includes information reported by Daily Trojan.
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Should university-affiliated medical centers continue to provide gender-affirming care services despite federal funding pressures?
