The largest children’s hospital in the U.S. intends to dismiss five doctors who created the first clinic in the country for “detransition,” allowing transgender youth to undo gender-affirming treatments. This comes after a settlement reached with a joint investigation by the state and the Trump administration.
According to the U.S. Department of Justice and Texas Attorney General Ken Paxton, Texas Children’s Hospital in Houston will also pay $10 million, having allegedly billed the state’s Medicaid program for treatments not permitted under state law.
Paxton’s office indicated that the settlement followed a lengthy investigation into the hospital’s practices, including claims of improper use of billing codes for Medicaid reimbursements.
In its statement, Texas Children’s affirmed its adherence to legal standards, indicating that the decision to settle was made to “protect our resources from endless and costly litigation” and rather concentrate on providing patient care.
They emphasized their commitment to prioritizing purpose over politics and remarked on their dedication to abide by the law.
A spokesperson for the hospital noted that the clinic would formalize the supportive, multidisciplinary services already extended to all patients needing care.
Reactions from civil rights organizations and some Democratic lawmakers condemned the settlement, arguing it prioritizes politics over medical ethics and seeks to marginalize transgender individuals from public life.
“It’s alarming to witness hospitals yield to the ongoing pressures from AG Paxton and the Trump administration aimed at eliminating this critical care,” commented Karen Lowy, senior counsel at Lambda Legal, an advocacy organization for LGBTQ rights.
A specific copy of the settlement agreement wasn’t immediately available.
The Department of Justice announced findings indicating that the hospital had violated federal laws against fraud, collusion, and providing false claims to government entities.
The hospital did cooperate with the investigation, which the department highlighted by mentioning a significant financial commitment to support victims needing care.
This agreement is a noteworthy win for those opposed to gender-affirming treatments for minors, including supporters of the Trump administration.
The Justice Department is actively investigating health care providers nationwide over the provision of treatments, like hormone therapy and surgeries for minors, which includes a criminal inquiry into a prominent hospital network in New York City.
As part of the settlement disclosed on Friday, Texas Children’s Hospital will initiate the nation’s first multidisciplinary clinic focused on reversing the effects of gender reassignment procedures, per Paxton’s office.
In the initial five years, these services will be offered to patients at no cost.
The attorney general’s office stated that the unnamed doctors, facing termination under the settlement, had acted improperly in their care of Texans. The hospital has permanently withdrawn their privileges and will not reemploy or certify them in the future.
Additionally, Texas Children’s plans to revise its policies to automatically revoke the privileges of any doctor violating the state’s ban on gender-affirming care for minors.
