Texas hospital to launch youth ‘detransition clinic,’ fire doctors in $10M settlement over transgender treatments
Texas Children’s Hospital in Houston will establish the nation’s first youth detransition clinic and fire five doctors as part of a $10 million settlement over allegations of billing Medicaid for gender-affirming treatments banned by state law. The hospital denies wrongdoing but agreed to the settlement to avoid prolonged litigation, while maintaining it has always followed the law. Civil rights groups and Democratic lawmakers criticized the settlement, saying it prioritizes political agendas over medical best practices and stigmatizes transgender individuals.
- ▪Texas Children’s Hospital will create the first U.S. detransition clinic to reverse gender-affirming treatments for youth.
- ▪The hospital will pay $10 million and fire five doctors over allegations of using false billing codes for prohibited gender-affirming care under Medicaid.
- ▪The settlement follows investigations by the U.S. Justice Department and Texas Attorney General Ken Paxton, who claimed the hospital violated federal and state laws.
- ▪The detransition clinic will offer free multidisciplinary care for five years to patients reversing gender transition.
- ▪Critics, including Lambda Legal, condemned the settlement as politically motivated and harmful to transgender healthcare access.
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US News Texas hospital to launch youth ‘detransition clinic,’ fire doctors in $10M settlement over transgender treatments By Reuters Published May 16, 2026, 5:44 a.m. ET The largest children’s hospital in the United States will create the country’s first “detransition clinic” to undo gender-affirming treatments for transgender youth and fire five doctors who performed the procedures to settle a joint investigation by the state and President Trump’s administration. The US Justice Department and Texas Attorney General Ken Paxton, a Republican, said in separate announcements that Texas Children’s Hospital in Houston would also pay $10 million for allegedly billing the state’s Medicaid program for gender-affirming treatment prohibited by state law.
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