Michigan hospital settles with employee fired for beliefs

A Michigan hospital will implement a new religious accommodation policy after settling with an employee fired for her beliefs about gender. University of Michigan Health-West in Caledonia, Mich., settled with Valerie Kloosterman for $410,000 in damages and fees, the First Liberty Institute said Wednesday. She worked at the health center as a physician’s assistant until 2021, the legal organization said. After working at the hospital for 17 years, officials fired her for declining to affirm a policy of the hospital supporting gender ideology. She sought a religious exemption to the policy as she said its statements were contrary to God’s design for gender.

She wanted to care for patients without being forced to violate her Christian beliefs, Kloosterman said in a statement. Now, the settlement will ensure all employees can provide medical care without going against their religion, she added. The settlement follows after Kloosterman won in court last year.

What will the new policy look like? University of Michigan Health-West will offer employees a religious accommodation policy, First Liberty said. Under it, employees will not be required to perform or assist with gender transition medical procedures if it goes against their beliefs. The hospital’s employees will also not be forced to use pronouns that contradict an individual’s sex, according to First Liberty.

Additionally, employees will be trained on the policy’s guidelines and how to obtain an accommodation if needed, First Liberty said. Employees will be able to ask for accommodations without fear of retaliation. The federal civil rights law, Title VII, bars employers from discriminating against and punishing employees for their faith, First Liberty attorney Kayla Toney said.

How did the case get here? Kloosterman sued the hospital in 2022. The hospital attempted to engage in arbitration instead of resolving the case in court. But an appeals court found Kloosterman had a right to sue in August 2025. This spring, she testified about her case before the Religious Liberty Commission in Washington, D.C.

Dig deeper: Read my report for Roundups where Kloosterman discussed her court battle.