The University of Minnesota, its physicians group and Fairview will return to negotiations on the future of the university’s medical school, but Fairview says it remains committed to the agreement university officials have opposed.
University officials reached an agreement to resume negotiations Thursday night, U President Rebecca Cunningham said in a statement Friday. Attorney General Keith Ellison will manage the talks with a mutually agreed-upon mediator who will be selected soon.
“The progress all parties have made to date is significant, and I thank the parties for building on this work and recognizing that time is of the essence in bringing this matter to closure in a way that secures continuity of high-quality patient care, retention of world-class physicians, and long-term support for the Medical School that trains 70 percent of all doctors in Minnesota,” Ellison said, in a statement. “This has always been and continues to be the goal.”
Fairview Health Services last week announced it had reached a 10-year partnership with University of Minnesota Physicians to fund the state’s medical school, which includes a $1 billion commitment from Fairview to continue investment in the medical center as well as the Masonic Children’s Hospital and other academic sites. Ellison at the time praised the deal as a “strong step forward,” but university officials opposed it, saying the physicians overstepped their authority.
The U’s Board of Regents, in a resolution last week, condemned the deal. This week, the leader with the physicians group was removed from a vice presidential role at the university. Cunningham and university regents were expected to meet on “clinical partnership options and next steps” Friday afternoon, but the meeting was canceled ahead of the announcement of renewed negotiations.
A previous deal between the U and Fairview is set to expire in 2026. Minneapolis-based Fairview owns health care facilities on the university’s Twin Cities campus, including the teaching hospital for the medical school.
“University of Minnesota Physicians (M Physicians), the clinical practice for the faculty of the University of Minnesota Medical School, looks forward to advancing our foundational clinical agreement with Fairview Health Services while continuing to serve the academic mission of the University of Minnesota,” M Physicians said in a statement Friday. “We intend to complete our definitive clinical agreement with Fairview by the end of 2025.”
Talks to extend the partnership between the university and Fairview have been ongoing since February 2024.
Officials with Fairview expressed appreciation for the return to negotiations in statements Friday, but they also indicated that they remain committed to their “foundational and binding” agreement previously reached with M Physicians.
“Our goal is to engage constructively to find solutions that clarify the University’s research and education mission while respecting and upholding the integrity of the agreement already in place,” Fairview officials said in a statement Friday.
Stabilizing the faculty practice is urgent as physician departures from M Physicians are currently nearly 30% higher than average, according to Fairview.
“Fairview will continue to participate in time-limited discussions, but it would be irresponsible to allow open-ended negotiations, to revisit terms that have already been settled, or to return to structures that have already failed,” the statement said. “The foundational agreement already reached between Fairview and UMP offers a clear path forward, and it is essential that the work continues without unnecessary barriers.”
Related Articles
University of Minnesota removes doctor from VP post after Fairview deal
UMN Board of Regents: U physicians group acted ‘unlawfully’ in reaching Fairview deal
Fairview Health Services, UMN Physicians partnership draws criticism from U administrators
Ellison thanked the parties for their work and strategic facilitator Lois Quam, who he said will remain as a facilitator in the process. Cunningham on Friday acknowledged the work ahead and the need to rebuild trust.
“This significant step forward gives me confidence we will reach an agreement that best serves the health and healthcare needs of Minnesota—not only for today, but for decades to come,” Cunningham said in her statement to staff and students. “The University is fully committed to negotiating in good faith and forging a plan of action that most strongly supports patients and our state. We are also dedicated to achieving a timely solution that is both practical and extraordinary, allowing the University to sustain and grow our academic mission.”
Leave a Reply