Texas Children's Hospital agrees to a $10 million settlement and open a detransition clinic after accuses of federal law violations in gender-affirming care for kids. Dr. Sheila Nazarian discusses the impacts of puberty blockers and surgery.

The Cleveland Clinic has agreed to commit $2 million toward detransition care as part of a settlement with the Department of Justice resolving allegations that the hospital system submitted inaccurate insurance claims related to gender-related medical procedures for minors.

The agreement, announced June 5, requires Cleveland Clinic to pay $308,000 to settle billing allegations and dedicate $2 million toward what the DOJ described as "restorative care" for detransitioners.

"We are pleased to have worked collaboratively toward a resolution related to an unintentional coding issue involving a small number of patients," Cleveland Clinic told Fox News Digital in a statement Thursday. "We remain focused on providing exceptional care to our patients and communities. We have complied and will continue to comply with all federal and state laws."

The clinic added that it had already provided detransition care to patients who requested it.

LARGEST CHILDREN’S HOSPITAL IN US TO OPEN ‘DETRANSITION CLINIC’ AFTER $10M SETTLEMENT WITH TRUMP DOJ, STATE

Four surgeons walk down a hospital corridor wearing scrubs. (iStock)

A press release from the Department of Justice highlighted that Cleveland Clinic’s settlement came less than a month after Texas Children’s Hospital agreed to pay a $10,000,000 penalty for similar infractions, including billing Texas Medicaid for "unallowable and illegal ‘gender-transition’ interventions," according to Texas Attorney General Ken Paxton, as well as starting a clinic for treating detransitioners. 

"These historic commitments pair the cessation of these dangerous practices masquerading as medical treatment with substantial investments in remediating the destruction they cause and restoring the health of the victims," the press release read.

"In working towards this settlement, the United States acknowledged that Cleveland Clinic took significant steps entitling it to credit for cooperation with the Department in its investigation," it added. "At all times during the investigation, Cleveland Clinic remained cooperative, proactive, and solution-driven, as highlighted by its multi-million dollar commitment to providing care to the victims who most need it."

TEXAS TRANSGENDER CARE WHISTLEBLOWER'S LAWYERS BELIEVE UNSEALED COURT DOCS PROVE DOJ NEVER HAD A CASE

A daytime view of the Cleveland Clinic main campus entrance reflecting pool near University Circle in Cleveland, Ohio. (iStock Cleveland Clinic)

Brett Shumate, assistant attorney general for the Civil Division, said in a statement that he is "grateful that institutions like Cleveland Clinic and Texas Children’s have decided to be part of the solution, not part of the problem."

He added, "Cleveland Clinic’s commitment to providing millions of dollars towards care for detransitioners is emblematic of just that. I am grateful for this resolution with Cleveland Clinic, but our work is far from over, and our division will continue to work tirelessly to protect America’s children and hold accountable those that have preyed on vulnerable children, whether they be pharmaceutical companies or medical providers."

PRO-LIFE CENTER FIGHTS NEW JERSEY ATTORNEY GENERAL'S 'FISHING EXPEDITION' IN SUPREME COURT BATTLE

Chloe Cole, another well-known detransitioner, has also filed a medical malpractice lawsuit over her gender transition. (Fox News Digital)

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Fox News Digital reached out to the Department of Justice for comment. 

Rachel del Guidice is a reporter for Fox News Digital. Story tips can be sent to rachel.delguidice@fox.com.

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