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Texas Children's Hospital has 90 days to open 'detransition clinic' under terms of settlement

The hospital will provide free detransition care for five years and pay $10 million, including more than $8 million to Texas, under the settlement.

  • Texas Children's Hospital must open a free "detransition clinic" within 90 days under a $10 million settlement announced Wednesday by Texas Attorney General Ken Paxton.
  • The agreement resolves a yearslong investigation by the state and the U.S. Department of Justice into allegations that the hospital illegally billed Texas Medicaid for gender-transition interventions using fraudulent diagnosis codes.
  • Under the settlement, Texas Children's must fire five physicians, amend institutional bylaws to prohibit future gender-transition services, and fund free multidisciplinary care—including surgery and hormone therapy—for five years.
  • The hospital will pay $1.7 million to nurse-whistleblower Vanessa Sivadge, who was terminated in 2024 after exposing the facility's secret gender-affirming care for minors.
  • Texas Children's stated that settling was a "difficult decision," aiming to "bring a close to this chapter to focus our resources on life-saving care." The clinic represents the first facility of its kind in the nation.
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KDFW broke the news on Thursday, August 6, 2026.
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