The Department of Justice secured a major legal settlement on Friday against Texas Children’s Hospital, forcing the provider to pay over $10 million in financial penalties and establish a first-of-its-kind medical facility dedicated exclusively to detransitioners.
The agreement comes as part of a broader, ongoing national investigation by federal authorities into the provision of sex-rejecting procedures on minors, including the administration of puberty blockers and cross-sex hormones.
Under the joint resolution coordinated with Texas Attorney General Ken Paxton, Texas Children’s Hospital agreed to completely halt these medical procedures for children.
Federal prosecutors alleged that the hospital system violated the False Claims Act, the Federal Food, Drug, and Cosmetic Act, alongside federal fraud and conspiracy laws. The core of the government’s case rested on claims that the hospital submitted false billings to both public and private insurance payors to secure coverage for pediatric gender procedures.
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“The Justice Department will use every weapon at its disposal to end the destructive and discredited practice of so-called ‘gender-affirming care’ for children,” said Acting Attorney General Todd Blanche. “Today’s resolution protects vulnerable children, holds providers accountable, and ensures those harmed receive the care they need.”
A central requirement of the settlement mandates that Texas Children’s Hospital fund and establish a specialized clinic focused on providing restorative care for individuals seeking to detransition.
According to the Justice Department, the hospital received credit for cooperating with investigators throughout the probe, with officials describing the organization as proactive and solution-driven during negotiations.
“The Department of Justice is committed to protecting America’s children,” Associate Attorney General Stanley Woodward stated. “Today’s resolution furthers that commitment and puts providers of so-called ‘gender affirming care’ on notice that this Department will vigorously enforce federal law where children are put at risk.”
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Assistant Attorney General for the Civil Division Brett A. Shumate noted that while the department is satisfied with this specific outcome, federal investigations into other medical providers and pharmaceutical companies involved in these practices will continue.
“I am grateful that Texas Children’s wants to be part of the solution and no longer the problem,” Shumate said. “Its commitment to providing detransitioner care is emblematic of just that.”
The case was handled by the Civil Division Enforcement and Affirmative Litigation Branch alongside the Commercial Litigation Branch, Fraud Section.
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