Texas reaches historic agreement against gender-affirming treatments for minors: 'Detransitioning' clinic to be established

The settlement between the Texas Attorney General's Office and Texas Children's Hospital was finalized this week, definitively ending the process announced in May and requiring the medical center to open, by the end of October 2026, what state authorities describe as the nation's first "detransition" clinic.

According to reports from Attorney General Ken Paxton's office, the hospital must pay a total of $10 million to settle claims filed under the Texas Health Care Fraud Prevention Act and the Federal False Claims Act.

Of that amount, 8.576 million dollars will go to the state of Texas. The case involved the alleged billing of Medicaid for gender transition procedures that authorities consider illegal or ineligible under state law.

A free clinic for five years

As part of the settlement, Texas Children's Hospital must establish a clinic specializing in caring for individuals who previously received gender transition treatments and who are now seeking to reverse or discontinue those procedures.

The clinic must begin operating by the end of October 2026 and offer its services free of charge for five years to patients who have previously received gender transition-related care.

The hospital must also publicize the clinic's existence on its website.

In addition, the agreement provides for the permanent revocation of hospital privileges for several physicians involved in these types of treatments and requires the hospital to amend its internal bylaws to stipulate that performing certain gender-transition procedures may result in the automatic loss of those privileges.