In a groundbreaking move, the largest pediatric hospital in the United States plans to open the nation’s first clinic dedicated to reversing gender-affirming treatments for transgender children. This initiative comes alongside the dismissal of five doctors involved in such procedures, as part of a settlement agreement with both state authorities and former President Trump’s administration.
The Justice Department of the United States, in conjunction with Texas Attorney General Ken Paxton, announced that Texas Children’s Hospital in Houston would be required to pay $10 million. This penalty addresses allegations of improperly billing the state’s Medicaid program for gender-affirming treatments, which are not permitted under state law.
The Attorney General’s office revealed that the settlement stems from an extensive investigation into the hospital’s practices. The probe focused on accusations that the 1,000-bed facility utilized misleading billing codes to obtain Medicaid reimbursements.
In response, Texas Children’s Hospital asserted its commitment to legal compliance. The hospital explained that the decision to settle was made to avoid prolonged and expensive legal battles, allowing them to redirect focus toward patient care.
“We take pride in prioritizing our mission over political disputes, and we affirm our adherence to the law,” stated the hospital.
A spokesperson for the hospital added that the new detransition clinic will enhance the comprehensive, multidisciplinary support that the facility already provides to its patients.
Civil rights groups and some Democratic lawmakers condemned the settlement, saying it placed politics over sound medical practice and was an attempt to stigmatize transgender people and push them out of public life.
“It is deeply appalling to see (the hospital) capitulate to the relentless pressure campaigns of both AG Paxton and the Trump Administration to end this care and penalize physicians who faithfully and lawfully provided it,” said Karen Loewy, senior counsel at Lambda Legal, an LGBTQ advocacy group.
Reuters could not immediately obtain a copy of the settlement agreement.
The Justice Department said its investigation found that the hospital has violated federal laws prohibiting fraud, conspiracy and making false claims to the government.
The hospital cooperated with the probe, “as highlighted by its multi-million-dollar commitment to providing care to the victims who most need it,” the department said.
The agreement is a significant victory for opponents of gender-affirming treatment for minors, including the Trump administration.
The Justice Department is investigating providers across the country, including a criminal probe involving one of New York City’s major hospital networks, for providing treatment such as hormone therapy and surgeries to minors.
Under the terms of the settlement announced on Friday, Texas Children’s will establish the first-ever multidisciplinary clinic designed to reverse the effects of gender transition procedures, Paxton’s office said.
For the first five years, the hospital will provide those services free of charge to patients.
The unidentified doctors who will be fired under the settlement “performed harmful interventions on Texans,” Paxton’s office said. The hospital agreed to permanently terminate the doctors’ privileges and never again hire or credential them.
Texas Children’s will also amend its bylaws to trigger automatic relinquishment of privileges for any doctor who violates the state’s ban on gender-affirming care for minors.
