The court's decision clears the way for Kloosterman's lawsuit to move forward in federal court rather than being forced into arbitration. Her legal team had argued that the move was a last-minute attempt by the hospital to avoid public accountability.

"Today's decision is a reckoning for institutions that discriminate and punish caring people of faith like Valerie Kloosterman," said Kayla Toney, counsel at First Liberty Institute, one of the firms representing Kloosterman. "It was intolerant of University of Michigan Health to fire Valerie because of her religious beliefs, and now the Sixth Circuit has recognized that they cannot avoid accountability by hiding the case in arbitration."

The appeals court sharply rebuked Michigan Health's attempt to move the case out of court, stating that the hospital could not play "heads I win, tails you lose" with the judicial process. According to First Liberty, the court noted that Kloosterman had previously received "exemplary performance reviews," had a "stellar" reputation among patients, and "treated all patients the same regardless of their sexual orientation or gender identity."

After being fired in 2021, Kloosterman, who worked for 17 years in the healthcare system, had filed a lawsuit claiming she was mistreated for refusing to use preferred pronouns or refer patients for gender reassignment surgeries. These requests, made through a workplace survey, prompted her to seek a religious accommodation. Instead, she says she was met with hostility.

"They asked me very specifically, will you use preferred pronouns, and will you refer for gender surgery? I said, I can't do that," Kloosterman previously told CBN News. "We're made in the image of God. It is not something we can just choose to be."

During that interview with CBN News, she contended that one equity supervisor called her "evil" and blamed her for unrelated suicides of people suffering from gender confusion. She also asserted she was prohibited from bringing her Bible or faith to work. Kloosterman's firing came about a month later.

MORE: Hospital Fires Christian P.A. in Transgender Agenda Case: 'We're Made in the Image of God'

Kevin Wynosky, an attorney with Clement & Murphy PLLC who argued the case at the Sixth Circuit, praised the ruling by the Sixth Circuit, saying, "Valerie loves her community and her job. She was devastated when University of Michigan Health officials derided her beliefs and fired her after 17 years of dedicated service. We applaud the Court's decision today that ensures Valerie will receive her day in court."

In an email to CBN News, University of Michigan Health-West stated the organization does not discuss personnel issues, then added it's committed to providing appropriate medical treatment to all patients and respects the religious beliefs of its employees.

The ruling arrives amid broader national debates over medical conscience rights and the clash between religious freedom and institutional "diversity" policies. Religious liberty advocates see Kloosterman's case as a potential legal precedent.

"No patient had ever asked her to use preferred pronouns, no patient ever asked her for gender referral drugs or surgeries. This was all hypothetical," Toney previously stated. "To be fired for her faith is just the most traumatic event you could imagine."

Kloosterman is seeking reinstatement and damages for financial loss. Legal experts say the case could strengthen protections for medical professionals who seek religious accommodations, especially as several states consider laws safeguarding medical conscience.

Meanwhile, the University of Michigan recently announced that it has ended gender-transition treatments for minors under the age of 19. It comes as national scrutiny intensifies toward transgender procedures on children.

As the case moves forward, Kloosterman's faith is resolute: "I think God's being glorified. I think the truth is being spoken in love. And you move forward, and you trust God. That's what we're called to do." Subscribe for free to Breaking Christian News here

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