Two major US healthcare systems have agreed to pay a combined $9.45 million to resolve a federal investigation into allegations involving billing for gender-affirming medical treatment provided to transgender minors.
Under separate agreements announced by the US Department of Justice, New York University Langone Health will pay $8.5 million, while the University of Pittsburgh Medical Center (UPMC) will pay $950,000.
The settlements also require both institutions to stop providing gender-affirming medical treatment to patients under 18, including puberty blockers, hormone therapy and surgical procedures.
Both healthcare systems denied wrongdoing as part of the agreements.
NYU Langone and UPMC said the settlements also contain provisions aimed at protecting the confidentiality of patients, parents and healthcare providers whose information became subject to grand jury subpoenas during the federal investigation.
The institutions said they agreed to the settlements in part to avoid prolonged legal proceedings while protecting patients, families, medical staff and the organizations themselves.
NYU Langone had already ended youth programme
NYU Langone, one of New York City’s largest hospital networks, had already stopped its programme for transgender patients under 18 in February. At the time, the hospital cited changes in the regulatory environment.
UPMC did not provide details on the current status of its transgender youth programme.
The agreements allow both healthcare systems to continue providing pediatric mental health services. Gender-affirming care for patients aged 18 and above will also remain available, according to statements from the institutions.
Part of wider federal investigation
The settlements form part of a broader federal effort under the Trump administration targeting medical treatment for transgender children and adolescents.
The Justice Department and the US Department of Health and Human Services have investigated hospitals and other healthcare providers over allegations that insurance claims for gender-affirming treatment were improperly submitted using diagnoses that did not accurately reflect the services provided.
The administration has argued that certain treatments for minors should not receive federal support.
The issue remains deeply contested. Major medical and mental-health organizations have maintained that gender-affirming care can benefit transgender young people, including by addressing mental-health risks. Critics have questioned the evidence surrounding some treatments and have argued that minors may be too young to make decisions with potentially long-term consequences.
The federal government recently finalized a rule restricting funding for gender-affirming medical care through two major federal healthcare programmes.
The Justice Department said the latest settlements follow similar agreements involving other major medical institutions, including Mount Sinai Health System in New York, Texas Children’s Hospital, the Cleveland Clinic Foundation and Connecticut Children’s Hospital.
Specific terms of the latest agreements, beyond the publicly announced payment amounts and requirements, will remain confidential.
