Mount Sinai Health System has reached an agreement with the Justice Department resolving a federal investigation into its provision of gender-transition procedures to minors.
Under the agreement, Mount Sinai will stop providing puberty blockers, cross-sex hormones and surgical procedures to minors.
The health system will also pay a monetary penalty and dedicate $2 million to free medical care for individuals who report harmful consequences from gender-transition treatment received as children.
The agreement stems from a nationwide Justice Department investigation that includes potential violations of the False Claims Act and federal health care laws.
According to the Justice Department, investigators are examining whether providers used false diagnosis codes or other billing practices to obtain reimbursement from federal health programs and private insurers for pediatric gender-transition procedures.
The investigation follows a January 2025 executive order directing federal agencies to take enforcement action concerning pediatric gender-transition procedures, including fraud investigations.
Mount Sinai has allegedly ‘cooperated’ with the investigation.
For Find Corporate Waste, the development signals another emerging area of federal health care enforcement where billing records, diagnosis coding, and federal reimbursement may become central to future False Claims Act investigations and whistleblower cases.
Leave a Reply