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NYU and UPMC agree to end specified pediatric services and pay $9.45 million to resolve federal investigations

NYU and UPMC agreed to stop specified pediatric services and pay a combined $9.45 million to resolve federal investigations. The agreements are entity-specific resolutions of disputed allegations, with cooperation credit and no determination of liability.

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What happened

On September 18, DOJ announced agreements resolving investigations into NYU Langone Hospitals and the University of Pittsburgh Medical Center concerning potential violations of federal law in their provision of gender-affirming care to minors. The announced commitments cover puberty blockers, cross-sex hormones and surgical procedures for minors. NYU agreed to pay $8.5 million and UPMC $950,000. These are the terms DOJ reported for the two organizations, rather than a court ruling that imposes the same service restrictions on other hospitals. Both systems expressly denied the allegations, and DOJ stated that liability had not been determined.

The resolutions sit within a wider DOJ investigation examining potential violations of the Food, Drug, and Cosmetic Act, the False Claims Act and other federal healthcare laws. The release identifies alleged use of false diagnosis codes to obtain payment from federal programs and private insurers as one billing concern under investigation. DOJ also credited both systems for significant cooperation, including ongoing cooperation concerning other entities. That combination of service commitments, payment terms and cooperation credit explains the enforcement significance: the announcement concerns negotiated resolutions and continuing investigations, not an adjudication of every disputed clinical or billing claim.

Scope and timing

Authority status
Settled
Applicability
Operationally relevant
Audience
Health systems, Provider networks
Jurisdiction
Federal, New York, Pennsylvania

Why it matters

These entity-specific resolutions illustrate coordinated billing and service-line investigations. They do not establish a general prohibition applicable to every provider.

Case details

agencies
U.S. Department of Justice, HHS Office of Inspector General, Food and Drug Administration Office of Criminal Investigations
entities
NYU Langone Hospitals, University of Pittsburgh Medical Center
action Type
Resolution agreement
event Date
2026-09-18
alleged Conduct
Potential violations involving pediatric services and allegedly false diagnosis codes used to obtain federal program and private-insurer payment. The institutions denied the allegations, and there was no determination of liability.
resolution
NYU agreed to pay $8.5 million, UPMC agreed to pay $950,000, and both agreed to cease the specified services for minors.

Operational lessons

  • Service-line decisions require coordinated legal, coding, pharmacy, and executive oversight.
  • Diagnosis codes used to support payment need contemporaneous clinical support.
  • Cooperation can materially shape a resolution even when allegations are denied.

Sources

Complete edition and supplemental material

This finding in the complete approved report →

Regulatory horizons, CIA trends and implementation trackers remain in the full report.

Read the entire Enforcement Briefing report →

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