Attorney General Paxton Finalizes $10M Texas Children's Hospital Settlement

AUSTIN, TX -- Attorney General Ken Paxton’s historic settlement agreement with Texas Children’s Hospital (“Texas Children’s”) has been fully executed.

In May, Attorney General Paxton secured the landmark settlement with Texas Children’s, which compels the creation of the country’s first-ever Detransition Clinic. It requires the hospital to pay $10 million to resolve claims brought under the Texas Health Care Program Fraud Prevention Act and the federal False Claims Act for billing Texas Medicaid for unallowable and illegal “gender-transition” interventions. Among other things, the settlement also compels the permanent and irrevocable termination of privileges of multiple physicians and requires Texas Children’s to amend their bylaws to specify that performance of gender-transition interventions triggers automatic relinquishment of medical staff privileges. This historic legal victory follows an extensive investigation led by the OAG’s Healthcare Program Enforcement Division.

Now, the settlement agreement has been fully executed. Texas Children’s will pay a total of $10 million to resolve these claims, with $8,576,000 going to the State of Texas. Additionally, the Detransition Clinic must be opened by the end of October 2026.

“This historic settlement is a resounding defeat for the radical gender ideology that has preyed on Texas children under the guise of ‘care,’” said Attorney General Paxton. “Texas Children’s has agreed to pay millions back to Texas. The detransition clinic, which is the first of its kind, must open within months. Activist doctors who harmed children have been fired. This settlement sends an unmistakable message: if you put radical ideology over children's health, my office will go after you. We will continue to lead the way in stopping the far-left’s radical gender agenda.”

To read the Settlement Agreement, click here.