Texas Children’s Hospital Settles Gender-Transition Billing Investigation

Texas Children’s Hospital will establish the first multidisciplinary detransition clinic in the United States and pay $10 million to the state of Texas as part of a settlement secured by Attorney General Ken Paxton.

The settlement follows a years-long investigation conducted by the Healthcare Program Enforcement Division. According to the Office of the Attorney General, the agreement resolves allegations that the hospital billed Texas Medicaid for illegal and unallowable interventions related to gender transition, including the use of false diagnosis codes.

Under the terms of the agreement, Texas Children’s Hospital will create a clinic specifically designed to provide medical care to patients who were subjected to gender-transition procedures. The facility is intended to help patients reverse damage caused by physicians who performed these interventions.

For the first five years of operation, all services provided through the detransition clinic will be funded by Texas Children’s Hospital and offered free of charge to patients.

The settlement also mandates significant personnel changes at the hospital. Texas Children’s has agreed to permanently terminate and revoke the privileges of five physicians who performed the medical interventions in question. The hospital is further prohibited from hiring or credentialing these individuals in the future.

Beyond the financial penalty and the creation of the clinic, the hospital has agreed to cease providing gender-transition services. To ensure future compliance, Texas Children’s will implement a series of ethics and compliance measures.

The hospital will also amend its internal bylaws. These changes will trigger the automatic relinquishment of privileges for any physician who violates Texas laws prohibiting medical interventions used to transition children.

Attorney General Paxton stated that the settlement was reached in coordination with the U.S. Department of Justice under President Trump.

This Detransition Clinic will help patients reverse the damage caused by ideologically-motivated physicians who harmed patients by performing dangerous medical interventions for the purpose of “transitioning” them.

Office of the Attorney General of Texas