Children's Minnesota hires compliance officer after alleged antitrust violations

Minneapolis-based Children's Minnesota appointed an antitrust compliance officer as part of an agreement with the state attorney general's office to settle allegations the health system violated federal and state antitrust laws, according to the StarTribune.

Four things to know:

1. Children's Minnesota and the state attorney general's office entered into an agreement in November 2018 to resolve alleged antitrust violations. The health system has denied any wrongdoing.

2. As part of the agreement, Children's Minnesota said its deputy general counsel will serve as its antitrust compliance officer and will educate the board and staff on antitrust issues.

3. In 2016, Children's Minnesota agreed not to market a telehealth service in certain postal codes near an unnamed competing health system. The agreement stemmed from concerns the marketing would threaten a proposed business arrangement between the organizations, according to court filings obtained by the publication.

4. However, the health system initiated a 90-day digital "pre-marketing" campaign in March 2016, according to the court filing, therefore violating the systems' arrangement.

"Children's denies the allegation that it entered into any illegal agreement or otherwise violated state or federal antitrust laws," the chief legal officer for the health system said in a statement to the publication. "Children's entered into the assurance [with the attorney general's office] solely for the purpose of settlement to avoid further expense related to the investigation."

To access the full report, click here.

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