Houston-based Texas Children’s Hospital has agreed to pay more than $10 million and establish what federal and state officials described as the nation’s first clinic focused on care for patients seeking to detransition after receiving gender-related medical treatment as part of settlements with the Texas attorney general and the Justice Department.
The agreements resolve allegations that Texas Children’s improperly billed public and private payers for pediatric gender-affirming care services, according to May 15 news releases from the Justice Department and Texas Attorney General Ken Paxton. The hospital also agreed to stop providing gender-affirming care to minors, including puberty blockers and cross-sex hormones, according to the releases. Texas Children’s denied the allegations and said in a May 15 statement shared with Becker’s that it had settled to avoid prolonged litigation.
Texas Children’s said that it “remain[s] proud knowing we will always put our purpose over politics and that we have and will continue to follow the law.”
The Justice Department said the agreements require Texas Children’s to establish a clinic dedicated to providing restorative and supportive care for patients affected by prior gender-related medical treatment. The hospital will fund the clinic’s services for its first five years, according to the Texas attorney general’s office.
The settlements come amid the Justice Department’s ongoing investigations into alleged violations of federal law related to gender-affirming care for minors. The broader legal and regulatory landscape remains uncertain. In April, a federal judge permanently barred HHS from enforcing or reimplementing HHS Secretary Robert F. Kennedy Jr.’s declaration targeting providers of gender-affirming care in 21 states and the District of Columbia. However, separate federal investigations and proposed CMS payment restrictions remain ongoing.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
