HOUSTON, Texas — The Office of the Texas Attorney General announced Friday that Texas Children’s Hospital will establish a “detransition clinic,” pay $10 million in Medicaid-related funds, and end its professional relationship with five physicians under a settlement agreement with the state.
The attorney general’s office said the hospital system agreed to create what it described as a first-of-its-kind clinic focused on providing medical care for patients who previously received gender-affirming treatments and seeking to address effects of those treatments.
The settlement also requires Texas Children’s Hospital to pay $10 million over allegations that it improperly billed Texas Medicaid for prior gender-transition-related care, according to the Attorney General’s Office.
In addition, the hospital system will fire five physicians and permanently sever ties with them, the attorney general’s office said.
In a statement, Texas Children’s Hospital said it cooperated with the investigation, produced millions of documents, and conducted internal reviews. The hospital said those reviews supported its compliance with applicable laws.
The hospital also said it agreed to settle to avoid prolonged litigation and to redirect resources toward patient care and research.
Texas Attorney General Ken Paxton said the agreement includes the creation of the detransition clinic, which he described as providing care for individuals affected by gender-affirming medical treatment.
According to the attorney general’s office, the clinic’s services will be funded by Texas Children’s Hospital and provided free of charge for the first five years.
The settlement also prohibits Texas Children’s Hospital from providing gender-affirming care to minors and requires ethics reforms and policy changes related to physician conduct and compliance with state law.
