Federal probe uncovers potential fraud in child gender treatments at major hospitals
By willowt // 2025-10-13
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  • DOJ alleges Boston Children’s Hospital may have misdiagnosed minors to secure insurance coverage for puberty blockers.
  • Data shows an unusual spike in "precocious puberty" diagnoses for children aged 10+, far beyond medical norms.
  • Puberty blockers, FDA-approved only for early puberty, were allegedly prescribed "like candy" for gender dysphoria.
  • Hospitals received millions in state reimbursements for gender-related services.
  • Legal battles intensify as federal judges weigh subpoenas for patient records amid claims of fraudulent billing.
Federal prosecutors are scrutinizing major children’s hospitals—including Boston Children’s Hospital (BCH) and Children’s Hospital of Philadelphia (CHOP)—for potential fraudulent billing practices tied to gender-related medical treatments for minors. The Department of Justice (DOJ) alleges that hospitals may have manipulated diagnoses to secure insurance coverage for puberty blockers and cross-sex hormones, drugs not FDA-approved for treating gender dysphoria in children. Court filings reveal that BCH diagnosed hundreds of children aged 10 and older with central precocious puberty (CPP), a condition typically defined by puberty onset before age 8 in girls and 9 in boys. Prosecutors argue that the surge in older diagnoses suggests hospitals mislabeled patients to justify off-label drug prescriptions.

Questionable diagnoses and financial incentives

According to DOJ-submitted insurance data, BCH saw a "large spike" in CPP diagnoses between 2020 and 2023, including at least one 22-year-old patient. Prosecutors contend that these late diagnoses defy medical logic, as puberty at age 10 is biologically normal. "Misleading insurance companies about a patient’s diagnosis to obtain payment for off-label pharmaceuticals could form the basis of a federal healthcare offense," the DOJ filing states. The agency also cited a researcher at BCH’s gender clinic who allegedly admitted puberty blockers were being prescribed "like candy." Public records show Massachusetts reimbursed BCH $1.4 million for "gender transition services" between 2015 and 2023, raising concerns about financial motives behind questionable diagnoses.

Legal showdown over subpoenas

The DOJ has issued more than 20 subpoenas nationwide, demanding patient records from hospitals providing gender-related care to minors. However, federal judges have clashed over the scope of these investigations. In September, Biden-appointed Judge Myong Joun blocked a DOJ subpoena, accusing prosecutors of acting in "bad faith" and lacking evidence of fraud. He argued the requests—including personnel files for 2,000 hospital employees—were "astonishingly broad." Meanwhile, CHOP and UPMC face similar scrutiny, with federal lawyers alleging "fraudulent billing practices" tied to off-label drug prescriptions. CHOP has pushed back, claiming the DOJ’s accusations are politically motivated.

Broader implications for medical ethics

This investigation intersects with a nationwide debate over pediatric gender medicine. Critics argue that irreversible treatments—such as puberty blockers and surgeries—are being pushed without sufficient long-term safety data. Countries like Sweden, Finland and the U.K. have already restricted these procedures, citing lack of evidence for benefits. Yet, U.S. hospitals continue offering them, often with insurance reimbursement—raising ethical and legal concerns. The DOJ’s probe could set a precedent for holding medical providers accountable if fraud is proven.

A turning point in pediatric gender medicine?

As federal investigators dig deeper, hospitals face mounting pressure over their handling of pediatric gender treatments. The DOJ’s findings suggest a systemic issue—misdiagnosing minors to justify off-label drug use—that could reshape medical standards and insurance practices. Whistleblowers within these institutions allege that ideological agendas, rather than rigorous science, have driven the rapid escalation of puberty blockers, cross-sex hormones, and irreversible surgeries on children—many of whom later regret these life-altering interventions. Detransitioners and dissenting clinicians warn that the long-term consequences—including sterility, bone density loss, and psychological trauma—are being ignored in favor of activist-driven protocols. Meanwhile, lawsuits against hospitals and pharmaceutical companies are exposing conflicts of interest, with some physicians receiving undisclosed payments from drug manufacturers promoting these treatments. For now, the legal battles continue, with courts weighing patient privacy against allegations of fraud. The outcome may determine whether hospitals retain federal funding—or whether a full-scale reckoning forces medicine to return to evidence-based, ethical care for minors. Public scrutiny grows as parents, lawmakers, and medical professionals demand transparency—and accountability—for what many now see as a medical scandal with irreversible consequences. Sources for this article include: YourNews.com DailyCallerNewsFoundation.org Inquirer.com
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