California Attorney General Rob Bonta has filed a lawsuit against Rady Children’s Health, alleging the San Diego-based system violated legally binding conditions tied to the merger of Rady Children’s Hospital-San Diego with Children’s Hospital of Orange County by ending gender-affirming care for patients younger than 19.
The lawsuit, filed Jan. 30 in San Diego County Superior Court, argues that Rady’s decision to end care violated conditions imposed by Mr. Bonta when he conditionally approved the merger in November 2024.
The merger closed Dec. 31, 2024, creating Rady Children’s Health effective Jan. 1, 2025.
Among other stipulations, the merger conditions required Rady to maintain the same types and levels of gender-affirming care services offered when the merger closed through 2034 and to obtain approval from the attorney general before reducing or eliminating any of those services, the lawsuit said.
On Jan. 20, Rady announced that effective Feb. 6, it would no longer provide gender-affirming medical interventions, procedures and prescriptions for patients younger than 19. However, on Feb. 5, a San Diego County Superior Court judge ordered the health system to continue offering gender care through Feb. 10.
When it announced the decision, Rady said the move was driven by the changing federal environment around gender-affirming care, including a referral to the HHS Office of Inspector General for investigation and concerns related to its participation in Medicaid and Medicare.
“This was a very difficult decision,” Rady said at the time, adding that it was made to ensure the nonprofit pediatric system could continue serving children and families while participating in essential federal programs.
Mr. Bonta said in a Jan. 30 news release that Rady did not notify his office as required under the merger conditions and did not receive approval before ending care for approximately 1,450 patients.
The lawsuit seeks a permanent injunction requiring Rady to restore all gender-affirming care services to the same types and levels provided when the merger closed, along with civil penalties and other equitable relief.
In a separate statement shared with Becker’s following the filing of the lawsuit, Rady said it is reviewing the lawsuit but declined to comment on the specific allegations, citing pending litigation. The system said it will address the attorney general’s claims through the legal process.
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