Texas Children's pays $10M and agrees to create the nation's first detransition clinic

Texas Attorney General Ken Paxton and the U.S. Department of Justice announced a settlement with Texas Children's Hospital on May 15, 2026, requiring the nation's largest children's hospital to pay $10 million to Texas's Medicaid program, terminate five physicians who provided gender-affirming care, and establish the country's first detransition clinic — a multidisciplinary center to assist patients seeking to reverse prior gender-affirming treatments. The settlement resolved allegations that the hospital violated the False Claims Act by submitting fraudulent Medicaid billings for gender-affirming procedures, and required Texas Children's to amend its bylaws to automatically strip privileges from any physician who violates Texas's gender care ban.