DOJ targeting whistleblowers who blew the lid off TX Children's Hospital violating state's Medicaid laws for transgender clinic

Texas Children’s Hospital (TCH), under fire after a whistleblower came forward and alleged the facility committed Medicaid fraud, removed a reporter from the facility who was seeking to speak with its CEO Mark Wallace about the attorney general’s investigation into the hospital’s sex change clinic, according to journalist and senior fellow at the Manhattan Institute Christopher Rufo. 
 

At least two whistleblowers have come forward and alleged that TCH committed Medicaid fraud within its sex-change program, Texas Scorecard reported. 

Rufo confirmed with a spokesperson in Texas Attorney General Ken Paxton’s office that an investigation is currently underway by that office looking into Medicaid fraud at the hospital. Rufo said the only possible avenues for the investigation are either criminal or civil. 

“If the state pursues a civil case against Texas Children’s the hospital could lose a significant amount of funding and, in the maximal outcome, even lose access to the state Medicaid program,” Rufo explained. “If the state decides to pursue criminal charges, the doctors involved could face significant fines and up to 10 years in prison.” 

One of the whistleblowers, Vanessa Sivadge, a nurse at the hospital, told Rufo that she had identified two patients at the facility who received coverage for transgender hormones and surgeries through TCH’s Health Plan STAR, a “no-cost Medicaid managed care plan.” If true, the conduct may violate state law.