Texas Children's Hospital in Houston reached a settlement on Friday with Texas Attorney General Ken Paxton over transgender medical services it offered until 2023, which will see it open the nation's first "detransition clinic." File Photo by James Nielsen/UPI | License Photo

May 15 (UPI) -- Texas Children's Hospital plans to create the first "detransition clinic" in the United States as part of a settlement with the state for provided transgender care, officials announced Friday.

Texas Attorney General Ken Paxton announced the settlement, which will also require the hospital to fire and revoke the medical privileges of doctors, as well as pay a $10 million fine.

The hospital will make care at the clinic free of charge for its first five years and offer services for children to detransition to their gender assigned at birth.

Paxton investigated the Houston-based hospital in 2023 for the transgender care services it offered at the same time the state legislature was outlawing gender-affirming care for children.