The growth of more localized facilities, such as community hospitals and microhospitals—defined as more accessible acute care facilities—is due to several factors, including population growth, increased demand for convenient care and cost effectiveness, according to the Urban Institute, a nonprofit research organization.
Assessing the need
According to the most recent U.S. Census Bureau data, Houston gained approximately 43,000 new residents between 2023 and 2024, with approximately 12% of Houston residents aged 65 or older. However, the majority of Houston’s population is still made up of younger adults, with 23.6% of residents under 18 years old.
Aaron Carlson, senior vice president of ambulatory services at the Kelsey-Seybold Clinic, said Houston’s population growth and increased demand for specialized health care services across several different age ranges played a large role in the clinic’s recent multifaceted expansion in Houston, including a new location that opened in the Upper Kirby district in February.
“We are looking across the Houston market to bring health care outside of the [Texas] Medical Center and closer to people’s homes,” he said. “There’s a heavy data approach we use to say, ‘Here’s the community; here’s the services they utilize. Now let’s get the doctors in that community and embed them there.’”
According to a 2021 report by the Greater Houston Partnership on regional health care, the Greater Houston area has significantly more medical clinics than hospitals, with approximately 13,899 ambulatory health care providers and roughly 240 hospitals. However, the city of Houston website notes there are only about 24 hospitals located within city limits, and 21 are located inside the Texas Medical Center.
Something to note
The Institute for Patient and Family-Centered Care defines ambulatory care as medical services performed on an outpatient basis, without admission to a hospital or other facility. For example, facilities can include primary care clinics, urgent care centers or treatment centers.
In 2025, a handful of new ambulatory care centers opened in Houston, including a new Kelsey-Seybold Clinic in Upper Kirby, 3102 Kirby Drive, with primary care and subspecialists such as gastrointestinal physicians, cardiologists and dermatologists.
Features of the clinic include:
- 36,000 square-foot building
- Accommodates up to 18 providers
- Offers pediatric care, internal medicine and family medicine
- Includes a cancer center with an on-site laboratory and radiology
The treatment facility includes:
- A 24-hour substance use detox program
- More than 100 health care workers on-site
- Services such as family medicine, obstetrics and psychiatry
- Three-floor facility with an aqua therapy pool, infrared sauna and gym
Among the rising need for more localized health centers due to population growth and convenience, cost effectiveness also plays a role in the shifting health care landscape, according to the Ambulatory Surgery Center Association.
According to a 2014 study by the National Institutes of Health, the No. 1 reason people don’t go to hospitals is often due to financial concerns.
Data from the Centers for Disease Control and Prevention in 2023 revealed that patients spent between $363 to $1,000 less on procedures when treated in a health care facility than in a hospital.
- 27.1% of adults in Houston don't have health insurance
- 85% of uninsured Texans skipped care in 2024 due to cost
- $30,000 is the average price of a 3-day hospital stay
- $211 is the average price for a new outpatient visit
As Houston continues to grow and diversify, the demand for affordable, neighborhood-based care is expected to rise. Health care leaders say the shift toward smaller, community-focused facilities is more than a trend—it’s a long-term response to evolving needs.
“It’s about giving patients options for access,” Carlson said. “Our overall expansion was driven by access. We believe value-based care is the future of health care, ... and we want to be out there and serving the community where they need us.”
Carlson said Kelsey-Seybold is looking to open another potential new clinic northwest of Montrose. A new precision diagnostic center is also slated to open in October near the River Oaks area called Fountain Life, which will help detect potential illnesses, including cancer.
