Ken Paxton Secures Settlement With Texas Children's Hospital Over Transition Care

Texas Attorney General Ken Paxton (R) announced a settlement with Texas Children's Hospital that includes the creation of what state officials describe as the nation's first detransition clinic, a $10 million payment tied to allegations involving Medicaid billing, and disciplinary action against several physicians.

According to Paxton, the settlement follows a multi-year investigation conducted by the Healthcare Program Enforcement Division into allegations involving Medicaid billing for gender-transition-related medical interventions.

The agreement states that Texas Children's billed Texas Medicaid for procedures that the state described as "unallowable and illegal," including through the use of false diagnosis codes.

"Today is a monumental day in the fight to stop the radical transgender movement," said Paxton. "This historic settlement reflects an institutional and fundamental cultural shift away from radical 'gender' ideology."

Under the settlement, Texas Children's will establish a multidisciplinary Detransition Clinic intended to provide care for patients who previously underwent gender-transition procedures. The hospital has agreed to fully fund services at the clinic for its first five years, with patients receiving care at no cost during that period.

The agreement also requires Texas Children's to terminate and permanently revoke privileges for five physicians accused by the state of performing prohibited medical interventions related to gender transition procedures for minors. In addition, the hospital agreed not to provide gender-transition services moving forward and to adopt new compliance and ethics measures related to Texas law.

The settlement further requires amendments to the hospital bylaws that would automatically revoke privileges for physicians found to violate the state's prohibition on medical interventions intended to transition minors.

Paxton said the settlement was reached in coordination with President Donald Trump's Department of Justice.

The settlement marks a significant escalation in Texas' ongoing legal and political battles over gender-transition-related medical care for minors, while also establishing new operational requirements for one of the nation's largest pediatric hospital systems.