Texas Children’s Hospital in Houston will establish what state officials describe as the first multidisciplinary clinic in the United States devoted to reversing gender transition treatments for young patients, and will permanently strip privileges from five physicians who performed such procedures, under a settlement announced by Texas Attorney General Ken Paxton.
Paxton said the hospital also will pay $10 million to resolve allegations that it billed the state Medicaid program for gender-affirming care prohibited by state law. His office described the outcome as the resolution of a years-long probe into the 1,000-bed pediatric center’s practices, including claims that false billing codes were used when seeking Medicaid reimbursement. Paxton’s office said the settlement was coordinated with the U.S. Department of Justice.
In a statement, Texas Children’s said it has complied with applicable laws and that it chose to settle to avoid protracted and expensive litigation, allowing the institution to refocus on patient care. "We stand proud knowing we will always put our purpose over politics and that we have and will continue to follow the law," the hospital said. Reuters could not immediately obtain a copy of the settlement agreement.
Details provided by Paxton’s office say the new clinic will be multidisciplinary and specifically designed to reverse the effects of gender transition procedures performed on minors. For the initial five-year period after opening, the hospital is required to offer those detransition services free of charge to patients.
The five physicians identified by state officials will have their hospital privileges permanently revoked and the hospital has agreed not to rehire or recredential them. Paxton’s office characterized those physicians as having "performed harmful interventions on Texans." As part of the settlement, Texas Children’s will revise its bylaws so that any doctor who violates the state’s ban on gender-affirming care for minors will automatically relinquish privileges.
Paxton’s announcement framed the settlement as a major win for opponents of gender-affirming treatment for minors. The Justice Department has been investigating providers nationally, including a criminal inquiry into a major hospital network in New York City, into the provision of hormone therapy and surgeries to minors, according to Paxton’s office.
Separately, Paxton’s office filed a lawsuit in February against the operator of a 400-bed children’s hospital in Fort Worth, alleging it performed gender interventions on patients as young as 9 years old. That lawsuit also names a gynecologist at the Fort Worth hospital accused of carrying out procedures on 19 patients that Paxton says are banned by state law. The Fort Worth hospital has denied wrongdoing.
Texas Children’s described its settlement as a means to protect the institution’s resources from "endless and costly litigation," while emphasizing that it will continue to follow the law and focus on serving patients. Paxton’s office said the settlement concluded its multi-year investigation into the hospital’s billing and treatment practices, with the hospital agreeing to the payment and operational changes outlined by the state.
Contextual note: The settlement terms described by state officials include the establishment of a detransition clinic, financial restitution to the state Medicaid program, termination of physician privileges, and bylaw changes to enforce the state ban on gender-affirming care for minors. The Department of Justice coordination was noted by Paxton’s office in describing how the settlement was reached.