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Feds Investigate Hospitals Over Religious Exemptions From Gender-Affirming Care

Feds Investigate Hospitals Over Religious Exemptions From Gender-Affirming Care

Federal health officials are investigating the University of Michigan Health system after a former employee claimed she was fired for seeking a religious exemption from providing gender-affirming care. (Seth Herald /AFP via Getty Images)

The Trump administration has launched investigations into health care organizations in an effort to allow providers to refuse care for transgender patients on religious or moral grounds.

One of the by the Department of Health and Human Services, launched in mid-June, targets the University of Michigan Health system over a former employee’s claims that she was fired for requesting a religious exemption from providing gender-affirming care.

An administration release announcing the probe says the Michigan case is the third investigation in 鈥渁 larger effort to strengthen enforcement of laws protecting conscience and religious exercise鈥 for medical providers, citing federal laws known as the .

The probes are the first time HHS has explicitly claimed the amendments 鈥渁llow providers to refuse gender-affirming care or to misgender patients,鈥 said , a professor at the University of Texas who studies conscience laws. Those laws, Sepper said, primarily allow objections to performing abortions or sterilizations but 鈥渄on’t apply to gender-affirming care, by their very own text.鈥

But religious freedom groups that supported the health worker in the Michigan case, Valerie Kloosterman, say the investigation is a welcome recognition of existing protections for medical professionals to refuse to provide some types of care that conflict with their beliefs.

鈥淲e are pleased to learn that the Department of Health and Human Services is taking its responsibility seriously to enforce the federal statutes protecting religious health care providers,鈥 said Kloosterman鈥檚 attorney Kayla Toney, of the First Liberty Institute, which advocates for religious liberty plaintiffs.

The two other cases HHS announced in recent months involve who didn鈥檛 want to be involved in 鈥渁bortion procedures contrary to their religious beliefs or moral convictions,鈥 and who asked for a religious exemption to 鈥渁void administering puberty blockers and cross-sex hormones to children,鈥 according to HHS. The department did not disclose the locations for those investigations.

Sepper said opening investigations into gender-affirming care cases is a new tactic for HHS after blocked by the previous Trump administration to broaden conscience rules.

And it sends a message that this administration will 鈥渋nvestigate or otherwise harass providers of gender-affirming care, even when that provision is legal in the states where they operate,鈥 said Sam Bagenstos, a general counsel at HHS during the Biden administration and a professor at the University of Michigan.

HHS spokesperson Andrew Nixon declined to comment, citing the ongoing investigation.

HHS launched its investigation years after Kloosterman filed a lawsuit against her former employer. She started working for Metropolitan Hospital in Caledonia, Michigan, as a physician assistant in 2004. When the hospital merged to become part of University of Michigan Health-West in 2021, Kloosterman took part in a 鈥渕andatory diversity training,鈥 according to a federal lawsuit filed in 2022.

In that training and follow-up discussions, the health system 鈥渁ttempted to compel Ms. Kloosterman to pledge, against her sincerely held religious convictions and her medical conscience, that she would speak biology-obscuring pronouns and make referrals for 鈥榞ender transition鈥 drugs and procedures,鈥 according to the lawsuit by Kloosterman鈥檚 attorneys.

A headshot of a female physician assistant in a white coat with a stethoscope around her neck.
Valerie Kloosterman says she was fired from her job as a physician assistant at the University of Michigan Health-West in 2021 after requesting a religious exemption from providing referrals for gender-affirming care.(First Liberty Institute)

These were, at this point, purely hypotheticals: 鈥淣o patient ever asked her for a referral for such drugs or procedures, and she never used pronouns contrary to a patient鈥檚 wishes,鈥 the suit claimed.

But when Kloosterman requested a religious accommodation, she was 鈥渟ummoned鈥 to a meeting with administrators, who 鈥渃alled her 鈥榚vil鈥 and a 鈥榣iar,鈥 mockingly told her that she could not take the Bible or her religious beliefs to work with her, and blamed her for gender dysphoria-related suicides,鈥 according to the lawsuit, which alleges she was fired in August 2021, shortly after the meeting.

The health system denied all allegations, and in April 2024, U.S. District Judge Jane Beckering dismissed Kloosterman鈥檚 case to proceed into arbitration. Kloosterman鈥檚 lawyers filed an appeal with the U.S. Court of Appeals for the 6th Circuit. Appellate judges heard oral arguments in the case in February but have not issued a decision.

HHS initiated its investigation under the Church Amendments because it鈥檚 鈥渃ommitted to enforcing Federal conscience laws in health care,鈥 said Paula M. Stannard, director of the department鈥檚 Office for Civil Rights, in a statement announcing the investigation. 鈥淗ealth care workers should be able to practice both their professions and their faith.鈥

But the investigation 鈥渞epresents a real expansion beyond what the Trump administration did in the first term, and also in terms of the text of the law,鈥 Sepper said.

The Church Amendments date to the 1970s and allow health care institutions and providers to refuse to participate in abortion or sterilization procedures.

鈥淪ome of these also apply to end-of-life care and to physician aid in dying. So they have relatively narrow scope,鈥 Sepper said. 鈥淭hey focus on a set of procedures. They don’t allow health care providers or institutions to refuse to provide all kinds of care based on their religious or moral objections.鈥

There is one broader provision in these laws that 鈥渋s about the conscience-based decision to perform, or not to perform, a lawful medical procedure,鈥 said Bagenstos, the former HHS general counsel during the Biden administration. But that applies only to recipients of a 鈥済rant or contract for biomedical or behavioral research,鈥 he said. So this case is 鈥渁n extreme stretch of the conscience protections, and probably more than a stretch.鈥

But , director of Islam and religious freedom at the Religious Freedom Institute, which filed an amicus brief supporting Kloosterman鈥檚 lawsuit, said the Church Amendments are just a few of the laws HHS enforces, along with broad and laws that prohibit discrimination .

鈥淭his is not a case where someone is refusing to treat someone who is LGBT,鈥 Royer said. 鈥淭his is a case of someone who does not believe that they should be forced to use pronouns that would constitute a lie.鈥

Other providers are available if a patient鈥檚 鈥渇eelings are hurt,鈥 he said. 鈥淏ut hurt feelings do not constitute the basis for the government violating our constitutional rights.鈥

The stakes for a health system are very different in an HHS investigation than in civil suits, Sepper said. The government agency, which oversees the vast majority of health care spending, could decide to strip Medicare and Medicaid funding from the health system. HHS has previously been hesitant to remove funding, Sepper said.

But it would be highly unusual 鈥 and possibly illegal 鈥 for HHS to actually withhold funding from the health system over a case like this, Bagenstos said.

By taking up these investigations so publicly, Sepper said, HHS is putting health systems 鈥渋n a very difficult situation.鈥 Antidiscrimination laws require them to treat transgender patients equally, she said. But now the administration is prioritizing 鈥渆mployees that might want to make it more difficult for transgender patients to receive care.鈥

These investigations are 鈥渕eant to offer red meat to the anti-LGBT rights movement, to tell them that HHS is squarely on their side,鈥 Sepper said.

This article is from a partnership with and .