Texas Attorney General Ken Paxton announced a settlement with Texas Children’s Hospital that requires the facility to pay $10 million and to open what his office described as the country’s first detransition clinic for patients who underwent “gender-transition” procedures.
The agreement, reached after a multi-year investigation by the attorney general’s Healthcare Program Enforcement Division, resolves allegations that the hospital billed Texas Medicaid for unallowable and illegal “gender-transition” interventions, including the use of false diagnosis codes, according to a May 15 press release from the attorney general’s office.
Under the terms of the deal, Texas Children’s will establish a multidisciplinary clinic to treat patients seeking to reverse the effects of sex-altering medical interventions. For the first five years of operation, the hospital will fund all services at the clinic, and patients will not be charged.
The settlement also requires Texas Children’s to fire and permanently revoke the privileges of five physicians who performed the interventions. The hospital agreed never to rehire or credential those doctors. Paxton’s news release did not name the five doctors.
Texas Children’s further agreed to stop providing “gender-transition” services, adopt new compliance and ethics measures, and amend its bylaws so that any physician who violates Texas’s prohibition on medical interventions to “transition” minors automatically loses privileges.
Paxton’s office said the settlement was reached in coordination with the U.S. Department of Justice.
“Today is a monumental day in the fight to stop the radical transgender movement. This historic settlement reflects an institutional and fundamental cultural shift away from radical ‘gender’ ideology. In addition to helping establish the first-ever Detransition Clinic and securing millions, this settlement will ensure that the deranged child mutilators who hurt our kids are fired and held accountable,” Paxton said.
“I applaud Texas Children’s Hospital for changing course and committing to being a part of the solution by agreeing to form a first-of-its-kind Detransition Clinic that will help provide free care to those who have been victimized by twisted, morally bankrupt transgender ideology. Under my watch, I will investigate and bring the full force of the law against any Texas hospital that abuses children with harmful medical interventions to ‘transition’ kids,” Paxton added.
In 2024, The Dallas Express reported on the case of a registered nurse, Vanessa Sivadge, who was fired by Texas Children’s after blowing the whistle on the hospital for allegedly billing gender mutilating procedures to Medicaid. She also alleged that the hospital was manipulating patient medical records by “listing the preferred gender identity on the medical record instead of the birth sex, making fraudulent billing difficult to detect.”
“I observed the harmful effects of sex change hormones and puberty blockers for children who were convinced this would be ‘life-saving’ treatment,” Sivadge later testified before a congressional subcommittee in 2025.
She described to the committee how doctors at the hospital would emotionally blackmail parents by suggesting that their failing to affirm their child’s identitiy confusion would lead to self-harm.
The Dallas Express also reported extensively on the story of Dr. Eithan Haim, who exposed that the Texas Children’s Hospital in Houston was secretly providing “sex alteration surgeries” and “transgender” hormones to minors. He subsequently became the target of what he called a “political witch hunt.”
The Department of Justice indicted Haim under the Biden administration for allegedly leaking personal information. The case was dismissed with prejudice.
