Texas Children’s Hospital to Pay Over $10 Million, Establish Detransition Clinic Under DOJ Settlement

Northeast Radio SD News – National News - The U.S. Department of Justice has announced a landmark resolution with Texas Children’s Hospital (TCH), marking the first enforcement action in the Department’s national investigation into alleged violations of federal law involving medical procedures performed on minors.

Under coordinated agreements with the DOJ and the Texas Attorney General’s Office, TCH will pay more than $10 million in damages and civil penalties, discontinue what the Department describes as “sex‑rejecting procedures” for minors, and establish the nation’s first clinic dedicated to providing medical care for individuals seeking to detransition.

According to the DOJ, the settlement resolves allegations that TCH submitted false billings to public and private insurers to obtain coverage for pediatric procedures involving puberty blockers and cross‑sex hormones. The Department alleges the conduct violated the Federal Food, Drug, and Cosmetic Act, the False Claims Act, and federal fraud and conspiracy statutes. Both TCH and the Texas Attorney General’s Office have denied all allegations, and the settlement does not constitute a finding of liability.

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Acting Attorney General Todd Blanche said the resolution “protects vulnerable children, holds providers accountable, and ensures those harmed receive the care they need.”

Associate Attorney General Stanley Woodward added that the agreement “puts providers of so‑called ‘gender‑affirming care’ on notice” that the Department intends to enforce federal law where children may be at risk.

Assistant Attorney General Brett A. Shumate said TCH’s cooperation during the investigation contributed to the final agreement, noting the hospital’s commitment to funding restorative care for detransitioners.

The DOJ stated that the investigation was led by its Civil Division’s Enforcement and Affirmative Litigation Branch and the Commercial Litigation Branch, Fraud Section.

Federal officials emphasized that the claims resolved in the settlement are allegations only, and no court has determined that TCH violated the law.