Texas Children’s Hospital (TCH), the largest children’s hospital in the U.S., has reached a settlement following a thorough investigation into its billing for gender-transition procedures involving minors.
As part of the settlement in collaboration with the Texas Attorney General’s Office, TCH will pay $10 million to address claims of false billing to Texas Medicaid for unqualified gender-transition treatments.
The hospital will also stop administering puberty blockers and cross-sex hormones to minors. In addition, it has been directed to permanently revoke the privileges of five doctors responsible for these procedures and strengthen ethics and compliance measures. Changes in its bylaws will mandate the loss of privileges for any physician breaching Texas laws concerning such interventions.
The settlement includes the establishment of what is being termed the nation’s first multidisciplinary detransition clinic. This clinic will offer medical and restorative care to individuals who previously underwent gender-transition procedures.
For the initial five years, all services provided by the clinic will be funded by TCH at no cost to patients, as part of the commitment to assist those affected by these medical interventions, often referred to as detransitioners.
Texas Attorney General Ken Paxton stated, “This landmark agreement will result in a Detransition Clinic, assisting patients in reversing the harm caused by ideologically-driven medical practices.”
The state’s investigation began in 2023, prompted by new legislation that limits gender-affirming care for minors. TCH fully cooperated, submitting over 5 million documents as part of the inquiry.
After the settlement, TCH commented that it chose to settle to avoid prolonged litigation, allowing it to refocus on critical care and innovative research.
The Department of Justice expressed appreciation for TCH’s cooperation, clarifying that the resolved claims remain allegations without a formal determination of liability.
