The State alleged three corporations, Southern Minnesota Health Alliance, Southern Minnesota Physicians, P.A., and Hospitals of Southern Minnesota, Inc. were illegally formed by most of the doctors and all of the hospitals in the Mankato area, including St. Peter and St. James, to maintain their control of the health care market. The State alleged that doctors, three hospitals and three affiliated corporations representing health care providers illegally combined to restrain trade in the health care market. Under the settlement, the three corporations agreed to pay a civil penalty of $125,000 to the State of Minnesota and to provide $450,000 in free medical care to the needy in the Mankato, Minnesota area.