Children’s Hospital Colorado says the Trump administration has opened a second federal investigation into its gender‑affirming services, reportedly focused on billing and diagnostic codes after a letter raised questions about possible anomalies. The hospital paused pediatric gender‑affirming care in December amid federal funding threats; families sued and the Colorado Supreme Court ordered care resumed in May. The hospital says it is willing to comply but that no doctors will provide the treatments, and a contempt trial over the institution’s compliance — with potential fines of $50,000 per day — is ongoing.
Second Federal Investigation Targets Children’s Hospital Colorado Over Gender‑Affirming Care
Children’s Hospital Colorado
Attorneys for Children’s Hospital Colorado told a court this week that the Trump administration has opened a second federal investigation into the hospital’s gender‑affirming services for transgender patients. Hospital counsel Elliot Peters described the probe in court as part of what he called 'a reign of terror by the federal government against transgender care providers,' according to The Colorado Sun.
What the Investigation Involves
The inquiry appears linked to a recent federal effort to scrutinize transgender health providers by reviewing billing and diagnostic codes. A letter obtained by The Colorado Sun, citing a communication from Robert F. Kennedy Jr., alleges 'potentially anomalous billing patterns' at Children’s Hospital Colorado. The hospital responded that it takes billing, coding and regulatory compliance seriously and that it has found no evidence of impropriety.
Legal And Clinical Context
Federal scrutiny has continued even though the hospital halted pediatric gender‑affirming care in December after federal officials warned institutions they could face cuts to federal funding if they provided such treatments. Families sued the hospital over that pause.
In May, the Colorado Supreme Court ordered the hospital to resume providing gender‑affirming care to minors. The hospital says it is willing to comply with the court order but has also stated that no physician at the institution is currently willing to provide those services.
Contempt Trial And Patient Impact
Several doctors testified this week in closed proceedings to protect their anonymity, confirming they would not treat patients at the hospital. Those sealed testimonies are part of a contempt trial brought by families and their attorneys, who argue the hospital still has not complied with the May state Supreme Court ruling.
Potential Penalty: If a court finds the hospital intentionally violated its orders, the institution could face fines of up to $50,000 per day.
Attorney John McHugh, representing the families, told the court that the hospital’s failure to provide care has jeopardized the health of young patients. Families reported they have been unable to obtain prescriptions for puberty blockers and other medications. One parent, testifying under a pseudonym, said her daughter no longer has appointments at the hospital and is running out of time to secure a new provider before puberty begins.
The contempt trial is scheduled to continue into next week.
Related Notes
- The investigation reportedly examines billing and diagnostic codes used by providers of gender‑affirming care.
- The dispute highlights tensions between federal policy threats and state court orders concerning transgender health services for minors.
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