In a groundbreaking move, the largest pediatric hospital in the United States has announced plans to establish the nation’s first “detransition clinic” aimed at reversing gender-affirming treatments for transgender youths. This decision comes as part of a settlement following a joint investigation by the state and the Trump administration, which also involves the dismissal of five physicians involved in such procedures.
The U.S. Justice Department and Texas Attorney General Ken Paxton, a Republican, disclosed that Texas Children’s Hospital in Houston will pay a $10 million settlement. This payment addresses claims of unlawful billing to the state’s Medicaid program for gender-affirming treatments, which are restricted under Texas law.
The Attorney General’s office indicated that the settlement concluded a comprehensive investigation into the hospital’s practices. Allegations included the misuse of billing codes to secure Medicaid reimbursements fraudulently.
In response, Texas Children’s Hospital issued a statement affirming its compliance with legal standards. The hospital emphasized that the settlement was aimed at conserving resources and avoiding protracted litigation, allowing it to refocus on its primary mission of patient care.
“We are committed to prioritizing our mission over political issues and will continue to operate within the bounds of the law,” the hospital declared.
A hospital spokesperson said the detransition clinic “will formalize the supportive, multidisciplinary services we already deliver to all patients who need our care.”
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.