Paxton final­izes $10M set­tle­ment with Texas Children’s

Audio By Carbonatix

(Legal Newsline) — Texas Attorney General Ken Paxton’s landmark settlement agreement with Texas Children’s Hospital has been fully executed in a lawsuit alleging improper Medicaid billing for youth gender-transition care.

Paxton secured the settlement in May, which compels the creation of the country’s first-ever Detransition Clinic. The agreement 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.

The Office of the Attorney General’s Healthcare Program Enforcement Division implemented an extensive investigation, which led to what it calls a “historic legal victory.”

“This historic settlement is a resounding defeat for the radical gender ideology that has preyed on Texas children under the guise of ‘care,’” said 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.”

According to the OAG, now that the settlement agreement has been fully executed, Texas Children’s will pay a total of $10 million to resolve the claims, with $8,576,000 going to the state of Texas.

Additionally, the Detransition Clinic must be opened by the end of October 2026.

Court records show that the settlement agreement is neither an admission of liability by the Texas Children’s nor a concession by either the state or the U.S. that their claims are not well founded.