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Vice President JD Vance has sent a request to the DOJ for a criminal investigation into hospitals and other health care providers for conducting fraudulent child sex-change procedures and billing Medicaid and private insurance companies for the fraudulent services.
This request comes after the HHS report released Thursday titled "Wolves in White Coats: How Doctors and Hospitals Pushed and Profited from the Fraud of 'Gender Medicine.'" The report describes how health care providers and hospitals operated a systematic scheme for profit, disguising "gender medicine" services as routine medical treatments. Drawing on insurance claims data, hospital records, and whistleblower testimony spanning 2015 to 2025, the report documents how children were converted into revenue centers.
In a letter to Attorney General Todd Blanche, Vance argued, "When providers deliberately miscode to obtain coverage for gender transition treatments that insurers would not otherwise cover, they should be held accountable. If this was done with the intent to commit Medicaid or private insurance fraud, then these providers should go to prison."
The report details alarming figures. Between 2015 and 2025, over 225 hospitals and health systems created pediatric transgender medicine clinics. Those clinics filed almost $120 million in insurance claims covering nearly 5,500 surgeries and 8,500 courses of puberty blockers or cross-sex hormones. Doctors routinely used generic codes — such as "endocrine disorder, unspecified" — to disguise the treatments, leading to a 30 percent increase in that billing category between 2020 and 2022. Fewer than 5 percent of patients with that code actually had endocrine disorders. Those miscoded claims alone totaled nearly $42.6 million.
What drove the creation of these clinics was not the welfare of children — it was money. General pediatrics has historically been one of the least financially rewarding medical specialties. Gender clinics changed that calculus entirely. A single child placed into the "gender medicine" pipeline can generate up to $170,000 in lifetime medical costs — encompassing endocrinology visits, hormone monitoring, bone density scans, puberty blockers, and eventual surgeries. Hospitals identified a profitable niche and engineered clinical pathways around it.
At Children's Hospital of Philadelphia, approximately 250 children were diagnosed with "precocious puberty" — a condition typically identified before age 8 — at ages 10 and above, including numerous teenagers aged 14 to 18. That diagnosis was then used to justify puberty blocker prescriptions that should never have been written for those patients.
Former HHS Assistant Secretary Rachel Levine, who built the federal "gender-affirming care" framework and pushed its expansion onto American children, is conspicuously absent from the current government's messaging. Levine's successor, Admiral Brian Christine, stood alongside Vance and HHS Secretary Robert F. Kennedy Jr. to announce the criminal referral, calling these procedures "sex-rejecting, mutilating transgender procedures" — explicitly not care.
The report also documents eight firsthand accounts from parents who described virtually no clinical safeguards, rushed pathways into irreversible procedures, minimal psychological evaluation, and active pressure from medical staff to fast-track children into medicalization. When patients sought to detransition, the system that profited from their initial treatment largely abandoned them.
The fraud Vance is now asking DOJ to prosecute was not limited to billing manipulation. It underwrote an entire pseudoscientific industry built on ideology and junk medicine. HHS's report confirms what parents and whistleblowers have alleged for years: the medical establishment identified a population of vulnerable children, manufactured a clinical rationale to keep them dependent on the system for life, and used fraudulent billing to finance it. Federal prosecutors will now determine whether that constitutes criminal conspiracy.












