Texas Hospital Agrees to Open Detransition Clinic and Pay $10 Million

Texas Children's Hospital in Houston agreed to open the country's first detransition clinic, pay $10 million, and fire five physicians involved in its transgender medical program. State and federal leaders announced the settlement on May 15. The agreement ends a three-year investigation by Texas officials and the Department of Justice.

The hospital must operate the new clinic for at least five years and provide free reversal procedures during that period. It must also implement compliance and ethics measures and change its bylaws to restrict future procedures. The hospital stated it settled to avoid further litigation costs. It maintained that all reviews found it compliant with the law.

The probe began after medical records were published in May 2023 showing the hospital performed procedures on minors despite earlier public statements. Officials alleged improper Medicaid billing and violations of federal medication and fraud statutes.

The hospital produced over five million documents during the inquiry. It said the process required substantial staff time and financial resources. The Department of Justice has issued more than 20 subpoenas to other clinics as part of similar reviews.

The hospital said it will continue to follow applicable laws while operating the new clinic.