OAN Staff Jenna Lee and Katherine Mosack
2:27 PM – Friday, May 15, 2026
Texas Attorney General Ken Paxton, alongside the U.S. Department of Justice (DOJ), announced a landmark settlement requiring Houston-based Texas Children’s Hospital to establish the nation’s first-ever multidisciplinary “detransition clinic.”
The resolution concludes a three-year investigation into the country’s largest pediatric facility regarding its prior practice of child mutilation and allegations of fraudulent billing practices.
Under the terms of the agreement, Texas Children’s Hospital will pay $10 million in civil penalties and damages to resolve claims that it improperly billed Texas Medicaid and other payors for unauthorized youth gender-transition procedures using falsified diagnosis codes.
In addition to the financial penalty, the hospital is required to permanently halt all pediatric transition services, revoke the medical privileges of multiple physicians involved in those treatments, and fully fund the new detransition clinic, which will provide restorative care free of charge to patients for its first five years.
While Paxton praised the agreement as a monumental victory against a harmful gender dysphoria movement, Texas Children’s Hospital still maintains that it has remained compliant with all state and federal laws. The hospital argued that it ultimately chose the difficult decision to settle to protect its medical resources from endless, costly litigation and refocus on its core life-saving services.
“Today is a monumental day in the fight to stop the radical transgender movement,” Paxton declared in a statement. “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.”
Earlier in 2026, Ken Paxton filed a lawsuit against Texas Children’s Hospital, the nation’s largest pediatric medical center, alleging that the facility violated the state’s ban on youth gender-transition medical care.
In addition to the primary violation, the state charged the hospital with defrauding Medicaid by utilizing fraudulent diagnosis codes to bill the government program for these illegal gender-transition procedures and interventions.
The settlement ends “a chapter that has been wrought with falsehoods and distractions” the hospital added, further stating that it “will allow us to redirect those precious resources to focus on the life-saving care and groundbreaking discoveries of our exceptional clinicians and scientists. We stand proud knowing we will always put our purpose over politics and that we have and will continue to follow the law.”
According to a press release from Paxton, Texas Children’s Hospital has agreed to cease providing all gender-transition services, though the announcement did not specify exactly which medical treatments fall under this prohibition.
In a shift toward restorative medicine, a new clinic will be established at the hospital to focus exclusively on treating patients who wish to reverse the effects of prior gender-transition surgeries and hormones. Paxton’s office noted that Texas Children’s Hospital will fully fund the new facility, allowing patients to receive these detransition services at no cost for the first five years.
Commending the medical center for changing course and choosing to be part of the solution, Paxton stated that this first-of-its-kind clinic will provide essential, free care to individuals who have been victimized by what he described as a twisted and 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,” his statement concluded.
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