Negotiations among the University of Minnesota, Fairview Health Services and Essentia Health will enter a new phase.
The Minnesota Attorney General’s Office announced on Wednesday it will select a strategic facilitator to explore potential solutions for the future of academic medicine in the state.
Last month, Fairview announced it was not interested in a merger with the other two entities after being invited to discuss a plan to create an “all-Minnesota health system solution.” The proposed nonprofit entity would be a $1 billion investment over five years from the university and Essentia.
The University system sought to buy back its teaching hospitals from Fairview as an agreement between the two entities will sunset in 2026.
All three systems have agreed to engage in renewed discussions convened by a strategic facilitator at Attorney General Keith Ellison’s request, according to a news release.
“Given the current status of the talks, the time pressure, and the importance of the public interest in getting this right, my office is taking a more active role,” Ellison said in the news release. “The parties have tried to find a resolution in the past, and I commend their efforts; these are complicated matters, however.
“Importantly, the parties recognize the importance of these negotiations to the public interest and they welcome the chance for a fresh start,” he said. “I am working with the parties to identify a strategic facilitator to aid the parties in finding a resolution and to prioritize the public interest in the parties’ negotiations.”
The Attorney General’s Office will select the strategic facilitator with input from Essentia, Fairview and the U of M. However, the state will not be responsible for financing the facilitator.
The effort is aimed at moderating the discussions among the three entities, establishing communication guidelines, milestones and deadline.
The attorney general claimed the facilitated discussions will focus on public interest, including the stability and sustainability of patient care, employees, academic research and education, the medical workforce, and the overall quality of health care in Minnesota.
As attorney general, Ellison serves as the primary regulator of Minnesota charities. Engaging a strategic facilitator doesn’t waive his authority to review health care transactions, seek court intervention in cases that aren’t within the public interest, or enforce federal and state antitrust laws.
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