Michigan Hospital Settles $410K Lawsuit Over Transgender Policy Firing

WHO:

NY Post - Valerie Kloosterman, a physician assistant at University of Michigan Health-West (UMHW).

Fox News - First Liberty Institute, the legal organization representing Kloosterman.

WHAT:

NY Post - UMHW agreed to pay $410,000 to settle a lawsuit filed by Kloosterman.

Fox News - Kloosterman was fired after refusing to comply with workplace policies related to transgender patients due to her faith convictions.

Fox News - The lawsuit states that Kloosterman received positive performance reviews before raising objections to mandatory gender identity training.

Fox News - The settlement includes a requirement for UMHW to create a religious accommodation policy that complies with the law.

WHERE:

NY Post - University of Michigan Health-West, Michigan.

WHEN:

Fox News - Kloosterman was terminated in August 2021.

NY Post - Kloosterman filed her lawsuit in October 2022.

WHY:

Fox News - Kloosterman claimed she was fired for her faith-based objections to mandatory training that conflicted with her Christian beliefs.

Fox News - The lawsuit alleges that UMHW officials disparaged Kloosterman's religious beliefs during a meeting.

HOW:

Fox News - Kloosterman requested a religious accommodation from completing mandatory training that required her to affirm statements about gender identity.

Fox News - The settlement requires UMHW to inform and train all employees on the new religious accommodation policy and provide reasonable accommodations without retribution.

(UPDATED August 1, 2026 06:47 UTC)

Valerie Kloosterman, a physician assistant at University of Michigan Health-West, has reached a settlement of $410,000 after suing the hospital for firing her due to her faith-based objections to mandatory training on gender identity. The lawsuit claimed that Kloosterman received positive performance reviews before raising her concerns and alleged that officials disparaged her religious beliefs during a meeting. As part of the settlement, UMHW is required to create a religious accommodation policy that complies with the law and to train all employees on this new policy, ensuring reasonable accommodations are provided without retribution.