Cleveland Clinic reaches DOJ settlement on billing allegations, agrees to $2M in detransition services and 20-year halt on gender care for minors

The Cleveland Clinic will pay $308,000 to resolve federal and state allegations that it used incorrect diagnosis codes to bill insurance for gender-affirming care provided to minors. The Department of Justice announced the settlement Friday. Under the agreement, the Cleveland Clinic pledged a 20-year commitment not to perform or offer gender-affirming care, which includes puberty blockers and cross-sex hormones, to anyone under 18.

All hospitals in Ohio are already barred from providing such care to minors under state law. The settlement requires the Cleveland Clinic to spend $2 million on detransition services available to all patients regardless of ability to pay. Services include hormonal balancing, surgical revision and reconstruction, fertility restoration, psychological support including grief counseling, and insurance coordination.

The hospital system must publicize the services through a dedicated website, phone number, care coordinator, and direct outreach to three non-medical organizations that assist people seeking detransition. The Cleveland Clinic is the second major health system to reach a settlement with the Trump administration on these issues.

Last month the Department of Justice settled with Texas Children’s Hospital, which agreed to pay $10 million and open the nation’s first detransition clinic.

“The Department of Justice is steadfastly committed to protecting America’s children,” Associate Attorney General Stanley Woodward said. ” He added that the division’s work “is far from over” and will continue against pharmaceutical companies and medical providers. ” The Hill has reached out to the Cleveland Clinic for comment.