Justice Dept. Wins Settlement With Texas Hospital Over Trans Procedures on Kids

Texas Children’s Hospital, the largest children’s hospital in the United States, has agreed to establish a multidisciplinary detransition clinic as part of a major settlement with Texas officials following a years-long investigation into billing practices connected to gender-transition procedures for minors.

The agreement with the Office of the Attorney General of Texas requires the hospital to pay $10 million in damages and civil penalties. The settlement resolves allegations that Texas Children’s submitted false claims to Texas Medicaid and other insurers for procedures state officials said were not allowable under Texas policy, including claims allegedly tied to inaccurate diagnosis codes.

As part of the settlement, Texas Children’s Hospital also agreed to stop administering puberty blockers and cross-sex hormones to minors. The hospital will revoke the medical privileges of five physicians connected to those treatments and implement new compliance and ethics reforms.

The hospital will also amend its bylaws to require physicians to automatically give up privileges if they are found to be violating Texas law prohibiting medical interventions intended to transition minors.

The most significant part of the settlement is the creation of what officials described as the nation’s first multidisciplinary detransition clinic. The clinic is intended to provide medical and restorative care for patients who previously underwent gender-transition procedures and are now seeking help after those interventions.

Under the agreement, all services offered through the clinic will be funded by Texas Children’s Hospital and provided free of charge for the first five years.

The United States Department of Justice said the hospital has committed millions of dollars toward care for patients described in the settlement as detransitioners, meaning individuals seeking treatment after undergoing transition-related medical procedures.

“Under the terms of this landmark agreement, Texas Children’s will establish the first-ever multidisciplinary clinic designed to provide medical care to patients who were subjected to ‘gender-transition’ procedures,” said Texas Attorney General Ken Paxton, who is running against GOP incumbent Sen. John Cornyn.

“This Detransition Clinic will help patients reverse the damage caused by ideologically-motivated physicians who harmed patients by performing dangerous medical interventions for the purpose of ‘transitioning’ them,” he added.

“For the first five years, all services provided through the Detransition Clinic will be funded by Texas Children’s and be free of charge to patients,” he said.

The investigation began in 2023 through the Texas Healthcare Program Enforcement Division after Texas passed legislation banning gender-transition medical treatments for minors.

According to the hospital, Texas Children’s cooperated with investigators and produced more than 5 million documents during the probe.

In a statement responding to the settlement, the hospital said it made “the difficult decision to settle with the Texas Attorney General and the Department of Justice, closing a chapter that has been wrought with falsehoods and distractions.”

The hospital added: “To be clear – we are settling to protect our resources from endless and costly litigation. This settlement will allow us to redirect those precious resources to focus on the life-saving care and groundbreaking discoveries of our exceptional clinicians and scientists.”

The DOJ acknowledged the hospital’s cooperation and noted that the settlement resolves allegations only, without any formal determination of liability.

For conservatives, the agreement marks a major victory for parental rights, medical accountability, and the protection of children from irreversible procedures pushed under the banner of ideology rather than long-term caution.

The case also highlights the broader cultural and legal shift taking place in Texas, where state leaders have increasingly moved to challenge progressive institutional power in medicine, education, and public policy.

Earlier this spring, a federal appeals court upheld a Texas law requiring public school classrooms to display the Ten Commandments, potentially setting up another major constitutional fight before the U.S. Supreme Court.

The U.S. Court of Appeals for the 5th Circuit upheld Senate Bill 10, which states that all public schools in Texas “shall” display the Ten Commandments in classrooms.

Opponents of the law have said they intend to take the case to the nation’s highest court. The case is known as Rav Nathan v. Alamo Heights Independent School District.

The Center Square spoke with David Hacker, vice president of legal services and senior counsel at First Liberty Institute, who said the ruling means schools must comply with the law. Hacker argued that the Ten Commandments carry major educational and historical significance.

They are “a foundational moral, literary, and historical text. Their influence on Western legal traditions is widely acknowledged and needs to be part of any complete education,” Hacker told the outlet.

Together, the Texas Children’s settlement and the Ten Commandments ruling underscore a larger battle over whether public institutions will continue advancing left-wing cultural agendas or return to principles rooted in truth, accountability, parental authority, and America’s moral foundation.