After seven weeks of mediations, Minneapolis-based University of Minnesota, Fairview Health Services and M Physicians reached a 10-year agreement extending and strengthening a 30-year partnership set to expire at the end of 2026.
Under the agreement, Fairview will commit $1 billion in investments over 10 years to enhance medical facilities on the University of Minnesota campus, according to a Jan. 26 news release from Minnesota Attorney General Keith Ellison’s office.
As part of the agreement, the university and Fairview will explore expanding physical capacity at the academic medical centers. Fairview will assume operations of the M Health Fairview Clinics and Surgery Center, negotiate a new lease with the university, forgive the center’s operating debt and absorb all annual operating losses.
Fairview will also provide $50 million annually in financial support to the University of Minnesota Medical School, with additional performance-based funding, bringing its total support to about $600 million before incentives.
Also under the agreement, M Physicians will remain the clinical practice group for University of Minnesota Medical School faculty.
The parties will also explore an initiative to expand access to specialized care for Greater Minnesota, including an initial $10 million commitment. New governance structures will also be created to deepen collaboration, including a leadership council with representatives from the university and Fairview
Mr. Ellison’s office has been part of the negotiations between the three parties since last March. The agreement comes after his office appointed a new mediation team to guide the negotiations. That team included former UnitedHealth Group CEO William McGuire, MD, former Blue Shield of California CEO Lois Quam.
The University of Minnesota board of regents, the M Physicians Board and the Fairview board of directors will act on the binding agreement by Feb. 1. The new 10-year deal takes effect on Jan. 1, 2027, but some features will be implemented this year.
