MN Supreme Court Finds in Favor of Children’s Hospital in Patient Information Case

October 19, 2023

On October 11, the Minnesota Supreme Court published its opinion in a case that pits the Minnesota Health Records Act (MHRA) against the federal Health Insurance Portability and Accountability Act (HIPAA).   

Minnesota is one of only a handful of states that has a state health records law that offers more protections to patients than HIPAA. This has caused headaches for healthcare providers and facilities when they try to comply with both laws.   

Parents of a patient at Children’s Hospital Minnesota sued the hospital for releasing their child’s health records to the Children’s Foundation, without their consent. The parents argued that the MHRA only allows for the release of health records on two occasions: 1) with the proper written consent of the patient or their representative, and 2) with specific authorization in law. The parents claim that because the MHRA generally provides more protections of health records, the specific authorization in law must come from a state law and that a federal law, such as HIPAA, cannot provide authorization.  

The district court, appellate court, and now the Minnesota Supreme Court, have all sided with Children’s Hospital, finding that the specific authorization in law could come from a federal law such as HIPAA.  

HIPAA allows for the use or disclosure of protected health information for “treatment, payment, or healthcare operations.” This exception is broad and includes fundraising activities, which is the exception that Children’s Hospital and other Minnesota facilities rely upon.  

The decision made by the Minnesota Supreme Court is a win for facilities and healthcare providers because it will allow them to conduct their business activities without additional burdens, but while continuing to protect patients’ protected health information.