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Michigan hospital pays $410K to settle lawsuit by physician assistant fired over transgender policy

August 1, 2026
in News
Michigan hospital pays $410K to settle lawsuit by physician assistant fired over transgender policy

A Michigan hospital has agreed to pay $410,000 to settle a lawsuit brought by a physician assistant who said she was fired after refusing to comply, due to her faith convictions, with workplace policies related to transgender patients, according to court filings and statements from the parties.

Valerie Kloosterman sued University of Michigan Health-West after she was terminated in August 2021.

“All I wanted to do was provide the best care possible to my patients without being forced to violate my Christian beliefs,” Kloosterman said in a statement shared with Fox News Digital.

First Liberty Institute, which represents Kloosterman, said she had received positive performance reviews throughout her employment before raising faith-based objections to mandatory gender identity training.

The organization told Fox News Digital Kloosterman was fired three weeks after requesting a religious accommodation from finishing a mandatory training that required her to affirm statements about gender identity that were in violation of her Christian faith.

According to First Liberty Institute, UMHW made no effort to accommodate her beliefs. She sued in October 2022.

Valerie Kloosterman.
Valerie Kloosterman sued University of Michigan Health-West after she was terminated in August 2021. First Liberty Institute
UMH-West
Kloosterman was fired three weeks after requesting a religious accommodation from finishing a mandatory training. First Liberty Institute

The lawsuit says University of Michigan Health-West officials called her to a meeting, where they disparaged her religious beliefs, called her “evil” and a “liar,” told her she could not bring her Christian beliefs into the workplace, and accused her of contributing to suicides among individuals with gender dysphoria.

If you or someone you know is having thoughts of suicide, please contact the National Suicide Prevention Lifeline at 1-800-273-TALK (8255).

The settlement, according to the legal group, calls for UMHW to make a religious accommodation policy that complies with the law, inform and train all employees, give reasonable religious accommodations without retribution to those who request it, and pay the $410,000 in damages and fees to Ms. Kloosterman and her attorneys.

Valerie Kloosterman testified before the Religious Liberty Commission in March 2026.
Valerie Kloosterman testified before the Religious Liberty Commission in March 2026. First Liberty Institute

“This new policy ensures that providers of faith and employees at UMHW will receive religious accommodations so that they can provide excellent care consistent with their medical judgment, because all patients are created in the image of God,” Kloosterman said in her statement to Fox News Digital.

“Title VII prohibits employers from discriminating against and punishing employees for their faith,” Kayla Toney, counsel at First Liberty, said in a statement shared with Fox News Digital. “Valerie is an exceptional physician assistant who cares for each of her patients. Employers cannot drive out people like Valerie just because of their sincere religious beliefs. We are grateful to have resolved this matter with University of Michigan Health-West.”

Fox News Digital reached out to University of Michigan Health-West for comment.

The post Michigan hospital pays $410K to settle lawsuit by physician assistant fired over transgender policy appeared first on New York Post.

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