Texas Children’s Hospital has finalized a landmark settlement with the Texas Attorney General’s Office, requiring the hospital to establish the nation’s first detransition clinic and pay $10 million to resolve Medicaid fraud claims. The settlement stems from an investigation into allegations that the hospital billed Texas Medicaid for pediatric gender treatments prohibited under state law.

Details of the Settlement

Under the agreement, Texas Children’s must open the detransition clinic by the end of October 2026 and provide its services at no cost for five years. The hospital will pay $10 million to resolve claims brought under the Texas Health Care Program Fraud Prevention Act and the federal False Claims Act. Of that amount, $8.576 million will go to the State of Texas, while whistleblower Vanessa Sivadge will receive approximately $1.7 million.

The agreement requires Texas Children’s to establish and promote the new detransition clinic on its website. The clinic must provide free medical services for individuals who previously received pediatric gender treatments and continue offering those services for at least five years. The attorney general’s office said the clinic will be the first of its kind in the United States.

Consequences for Physicians

As part of the settlement, Texas Children’s also agreed to permanently and irrevocably terminate the medical staff privileges of multiple physicians connected to the pediatric gender treatment program. The hospital must also amend its medical staff bylaws so that performing pediatric gender treatments automatically results in the relinquishment of hospital privileges.

Original reporting: The Dallas Express — read the source article.