Hospital’s Survival Gamble: Defies California, Risks Funding

California’s Attorney General is suing a children’s hospital for choosing to protect federal funding over performing gender transition procedures on minors, exposing the radical left’s prioritization of experimental treatments over medical institutions’ survival.

Story Snapshot

California AG Rob Bonta filed lawsuit against Rady Children’s Health for ending gender-affirming care for patients under 19 without state approval
Hospital cited Trump administration funding threats and safety concerns as reasons for discontinuing controversial treatments affecting 1,450 minors
Federal policies now classify puberty blockers, hormones, and surgeries for minors as unsafe, risking Medicare and Medicaid disqualification for providers
Case represents escalating clash between California’s radical gender ideology agenda and federal authority to protect children from irreversible medical interventions

Hospital Forced to Choose Between Ideology and Survival

Rady Children’s Health announced in January 2026 that it would discontinue gender-affirming care for patients under 19, effective February 6. The hospital, which operates three major Southern California facilities serving over 200,000 children annually, made this difficult decision after the Trump administration declared such treatments non-compliant with medical standards. Federal officials threatened to exclude providers from Medicare and Medicaid programs, which would devastate the hospital’s ability to serve its broader patient population. Rady’s leadership emphasized their responsibilities as a nonprofit to maintain financial viability while serving the community’s children.

California’s Overreach on Merger Conditions

The lawsuit stems from conditions imposed during Rady’s January 2025 merger with Children’s Hospital of Orange County. Attorney General Bonta required the hospital to obtain prior approval before reducing gender-affirming services and prohibited discrimination based on gender identity. These conditions, binding through 2034, grant California’s AG unprecedented control over a private nonprofit’s medical decisions. Bonta claims Rady “flagrantly disregarded” these obligations by ending services without notification. The hospital had provided such treatments for approximately 14 years, serving about 1,900 patients total, including roughly 1,450 under age 19.

Federal Government Protects Children from Experimental Treatments

The Trump administration’s position reflects growing concerns about the safety and effectiveness of gender transition treatments for minors. Presidential executive orders and HHS declarations under Secretary Robert F. Kennedy have classified puberty blockers, hormone therapies, and surgical interventions for children as unsafe practices. This federal stance prioritizes protecting vulnerable young people from irreversible medical decisions made during adolescence. Nineteen Democrat-led states, including California, have filed lawsuits challenging these common-sense protections, demonstrating the left’s commitment to ideology over children’s wellbeing. The administration’s Medicare and Medicaid funding leverage appropriately incentivizes hospitals to halt procedures that lack long-term safety data for pediatric patients.

State Power Grab Threatens Healthcare Independence

Bonta’s lawsuit seeks a permanent injunction forcing Rady to restore services, civil penalties up to $2,500 per violation, and other equitable relief. This aggressive legal action sets a dangerous precedent for California’s oversight of nonprofit hospital mergers, effectively allowing the state to dictate medical practices regardless of federal standards or evolving scientific evidence. The case reveals how leftist state officials will weaponize regulatory approval processes to enforce ideological conformity. If successful, this lawsuit could discourage future hospital mergers in California and force medical institutions to choose between state compliance and federal funding, ultimately harming patients who depend on these facilities for all types of pediatric care.

Real Consequences of Radical Gender Ideology

Rady’s decision affected approximately 1,450 patients under 19 who were receiving gender-affirming care, with services ending after just 17 days’ notice. However, this situation results directly from California’s attempt to force hospitals into maintaining controversial treatments despite federal safety concerns and funding threats. The hospital began scaling back services in July 2025, initially stopping new patients from outside San Diego and Imperial counties, then halting chest surgeries in October, and finally ceasing new patient acceptance in December. These gradual reductions demonstrate Rady’s attempt to navigate impossible conflicting demands from state and federal authorities while maintaining financial stability to serve its broader pediatric mission.