How Toxic are Non-stick pans?

PTFE (PolyTetraFluoroEthylene) is the same thing as the more commonly known Teflon. (“Teflon” is the trademarked brand name used by DuPont). And yes, there are health concerns associated with its use.
The Environmental Working Group (EWG) is an environmental research and advocacy organization that has looked closely at this issue. They have produced two reports which may be of interest to you.
The first report, called "Canaries in the Kitchen" is entirely focused on Teflon (PTFEs), and it focuses on the toxicity to pet birds especially - but it also discusses human health effects. When PTFE-coated pans are heated to high temperatures, they can “gas off” several toxic chemicals known to be fatal to pet birds. The report indicates that some humans (and they believe children are more susceptible) can get "polymer fume fever" from exposure to overheated pans as well.
You might especially want to look at the last two sections which include these helpful fact sheets:
"Tips for bird owners and the rest of us"
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