Houston, Texas — Texas Attorney General Ken Paxton announced a $10 million settlement with Texas Children’s Hospital that requires the hospital to establish what officials describe as the nation’s first state-mandated detransition clinic for former gender-transition patients.
The agreement follows years of investigations by Paxton’s office into allegations that the Houston-based pediatric hospital improperly billed Texas Medicaid for gender-related treatments involving minors. The settlement also bars the hospital from providing gender-transition procedures to minors moving forward and requires the institution to revoke privileges for several physicians tied to the program.
Texas Children’s Hospital denied wrongdoing and said it settled to avoid prolonged litigation costs. In a statement, the hospital said multiple reviews found it compliant with applicable laws and regulations.
Paxton framed the agreement as part of his broader campaign against gender-affirming care for minors, which he has repeatedly compared to child abuse. Major medical organizations, including the American Academy of Pediatrics and the American Medical Association, continue to support evidence-based gender-affirming care standards for some transgender youth, though surgical procedures for minors remain relatively rare in the United States. Doctors also do not routinely recommend gender transitions for children, despite rhetoric from some conservative officials suggesting otherwise.
The settlement was supported by the Department of Justice and follows whistleblower allegations made by former resident physician Dr. Eithan Haim, whose federal prosecution over leaked patient information was later dismissed after Trump returned to office.
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