A new mediation team tapped by the Minnesota Attorney General’s Office is stepping in to restart high-stakes talks among the University of Minnesota, Fairview Health Services and M Physicians over the future of their clinical partnership.
The team includes retired judge Thomas Fraser as mediator — joined by two co‑equal consultants: former Blue Shield of California CEO Lois Quam and William McGuire, MD, former UnitedHealth Group CEO who stepped down almost 20 years ago after an investigation into the insurer’s options practices.
Ms. Quam spent 17 years with UnitedHealth Group and more recently served briefly as CEO of Blue Shield of California, before stepping down earlier this year. Her background spans global health, policy and executive leadership. Dr. McGuire, a pulmonologist with deep ties to academic medicine, brings both a clinical perspective and a long‑standing philanthropic commitment to the University of Minnesota.
These new appointments come amid broader efforts to finalize a long-term partnership between Fairview and M Physicians. Under a framework concluded in November, Fairview committed $1 billion in capital to support key academic sites including the University of Minnesota Medical Center and Masonic Children’s Hospital. The plan — set to begin Jan. 1, 2027 — is intended to sustain clinical care, research, medical education and community access over the next decade.
But the agreement has drawn sharp criticism from university leadership, which argues the deal was made without adequate university involvement — labeling it a “hostile takeover” of its medical school that undermines academic governance and long‑term research capacity.
The mediation will need to address several key issues, including:
- How to balance clinical operations, physician autonomy and academic oversight in a merged structure.
- Allocation and governance of the $1 billion capital commitment.
- Long‑term research, education funding and protections for academic integrity.
- Access to care across metropolitan and rural Minnesota, including continuity of community‑based services.
- Contracting, payer arrangements and integration with broader health‑system and payer landscapes.
