By Steve Gorman
Sept 18 (Reuters) – Two major US hospital systems have agreed to pay nearly $9.5 million combined to settle a US Department of Justice probe into claims that the medical centers were improperly billing for gender-affirming care provided to minors, the department said on Friday.
Under the agreements, the New York University Langone Health system and University of Pittsburgh Medical Center will cease providing such transgender-related care as puberty blockers, hormone treatments and surgical procedures to patients under age 18, the department said.
In separate statements, both institutions said the agreement also safeguards the confidentiality of patients, legal guardians and providers whose privacy was threatened by grand jury subpoenas that the Justice Department had issued as part of its investigation.
Moreover, the two healthcare systems said their agreements include express denials of any wrongdoing or liability. Pediatric mental health programs and gender-affirming care for patients 18 and older will continue, they said.
The Justice Department said NYU Langone agreed to pay $8.5 million as part of its settlement, while Pittsburgh’s UPMC will pay $950,000.
“We believe this resolution is in the best interests of our patients and their families, protecting them as well as our providers and the institution from prolonged litigation,” NYU Langone said in a statement.
UPMC expressed the same rationale.
In the case of NYU Langone, one of New York City’s leading hospital networks, the institution already had discontinued its program for treating transgender youth in February, citing the “current regulatory environment.”
UPMC did not address the prevailing status of its transgender youth health program.
The settlement stems from a broader campaign by President Donald Trump and his administration to end gender-affirming medical treatments for children who experience an innate sense of self that conflicts with their birth sex, a condition called gender dysphoria.
A key part of Trump’s crackdown has comprised investigations by the Justice Department and US Department of Health and Human Services accusing dozens of hospitals and healthcare providers of fraudulently billing for gender-affirming care.
The inquiries have alleged that providers routinely submit claims under false disorder diagnoses to obtain reimbursements from both private and government-sponsored health plans.
There is wide agreement among mainstream medical and mental health professionals that gender-affirming care saves lives by reducing the risk of depression and suicide among transgender youth.
Opponents of transgender healthcare interventions say the long-term effects are not fully understood and that youths are too young to make such life-altering choices, even with parental supervision.
The Trump administration finalized a rule last month barring two major federal healthcare programs from funding gender-affirming medical care.
The Justice Department said Friday’s announcement followed similar agreements reached with Mount Sinai Health System in New York, Texas Children’s Hospital, the Cleveland Clinic Foundation and Connecticut Children’s Hospital. It said all parties have agreed to keep precise details of Friday’s settlement terms confidential.
(Reporting and writing by Steve Gorman in Los Angeles; Additional reporting by Nate Raymond in Boston; Editing by Will Dunham)
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