Minneapolis-based University of Minnesota, Fairview Health Services and University of Minnesota Physicians have finalized agreements to cement a new 10-year partnership set to take effect Jan. 1, 2027.
The agreements operationalize a mediated deal reached in January and would preserve the organizations’ academic, research and clinical relationship after their current 30-year agreement expires at the end of 2026. The deal still requires approval from the University of Minnesota Board of Regents and the governing boards of Fairview and M Physicians.
The Board of Regents’ Academic Health Committee is set to discuss the agreement June 11, with the full board expected to vote June 12.
Under the agreement, Fairview will commit $1 billion over 10 years to invest in medical facilities at University of Minnesota Medical Center. Fairview will also provide $50 million in annual financial support for the University of Minnesota Medical School, with the potential for additional funding tied to system performance.
The agreement also reaffirms M Physicians as the sole faculty practice group for the University of Minnesota Medical School’s Twin Cities campus. The University and Fairview also reached an academic affiliation agreement allowing faculty, students, residents and fellows to conduct teaching and research in Fairview facilities.
The partnership supports care for about 1.2 million patients annually and helps train about 70% of Minnesota’s physicians, according to a June 9 news release from Minnesota Attorney General Keith Ellison’s office. The agreements bring to a close a mediation process Mr. Ellison began in 2025. The parties reached the framework for the 10-year deal in January after weeks of mediation.
“These agreements provide much needed clarity and a path to restore trust while sustaining and strengthening health and healthcare in Minnesota,” Rebecca Cunningham, president of the University of Minnesota, said in a June 9 statement.
The university also said its agreement with M Physicians strengthens support for the medical school’s research and education missions, clarifies shared governance and gives the CEO of M Physicians a key University leadership role.
On the other side of the partnership, the university said its agreement with Fairview defines how the organizations will support medical research and education, affirms Fairview’s financial commitment to the university’s academic health mission and will help fund facility investments, updates, modernization and maintenance at hospitals on the university’s Minneapolis campus.
The parties also plan to phase out the “M Health Fairview” brand and Fairview’s use of the university’s “Block M” after the current agreement expires.
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