Texas Children's Hospital (TCH) has terminated registered nurse Vanessa Sivadge after she came forward with allegations of Medicaid fraud related to the hospital's gender-affirming care program for minors. Sivadge, who had worked in the hospital's endocrine clinic, claims that TCH unlawfully billed the state Medicaid program for treatments that included puberty blockers and cross-sex hormones, despite public denials by the hospital of such practices.
Sivadge first went public with her concerns in May 2023, anonymously sharing her story through Christopher F. Rufo's Substack. She corroborated the testimony of Dr. Eithan Haim, another whistleblower who had previously exposed the hospital's continued provision of transgender medical interventions to minors. According to Sivadge, she had firsthand knowledge of these treatments being prescribed to minors, despite TCH's public claims to the contrary.
In her statement, Sivadge revealed that after her initial story was published, Texas Attorney General Ken Paxton launched an investigation into TCH's gender-affirming care program. "I knew what Dr. Haim reported to be true because I worked in the endocrine clinic and had firsthand knowledge of patients being prescribed puberty blockers and cross-sex hormones," Sivadge wrote in her fundraising page on GiveSendGo, a platform she is using to raise money for her legal defense.
The situation escalated when Sivadge, citing her discomfort with her role in the endocrine clinic, requested a transfer to a different department. Instead of accommodating her request, TCH placed her on leave and subsequently terminated her employment on August 16. Sivadge claims that the hospital's actions were a direct response to her whistleblowing activities.
Adding to the intensity of the situation, Sivadge reported that two FBI agents visited her home after her whistleblower story was made public. According to Sivadge, the agents threatened her, suggesting that her strong views against gender-affirming care could make her life difficult if she did not cooperate with their investigation. "They told me I was not safe unless I helped them," Sivadge wrote, describing the encounter as intimidating and overwhelming.
Following her dismissal, Sivadge has retained legal counsel and is preparing to challenge TCH in court. She has vowed to continue fighting, stating on social media, "No regrets." Her legal battle has gained significant attention, particularly among conservative circles, where her case is seen as a pivotal moment in the ongoing debate over gender-affirming care for minors.
This case comes in the wake of legislative actions in Texas aimed at curbing such medical interventions for minors. Shortly after Sivadge and Haim came forward, the Texas Legislature passed SB 14, a bill that bans certain gender-affirming procedures for minors. Despite this, allegations have surfaced that TCH continued these practices in secret.
The situation has attracted the attention of lawmakers and federal authorities. Ten Texas Congress members have called on U.S. Attorney General Merrick Garland to investigate the allegations of Medicaid fraud related to child gender modification at TCH. Additionally, the Office of Inspector General for Texas Health and Human Services has acknowledged that the allegations "warrant investigation" and confirmed that the Office of the Attorney General is actively pursuing the matter.
Dr. Eithan Haim, the original whistleblower, has also faced repercussions for his actions. He was visited by agents from the U.S. Department of Justice and has been indicted on four felony counts of violating the Health Insurance Portability and Accountability Act (HIPAA). These developments have raised concerns about the potential risks faced by whistleblowers who come forward with information about powerful institutions.
As Sivadge prepares for her legal battle, she continues to receive support from the public, particularly from those who share her concerns about the implications of gender-affirming care for minors. "Thank you for your continued support in telling my story, which is saving children's lives and encouraging other whistleblowers like me to come forward," she wrote on her fundraising page.
