MINNEAPOLIS (KMSP) - The University of Minnesota and Fairview Health Services announced a new, pending eight-year partnership Monday that, while still in the approval process, will likely include between $35-$50 million in annual support for the university's medical school and more than $100 million in capital investments.
The two organizations also plan to operate at least partially under one brand name, bringing together several clinics that currently maintain separate identities, according to a release. The agreement will also likely include an option for a 10-year extension.
A non-binding letter of intent was signed Monday by the university's Board of Regents and Fairview's Board of Directors, though the two parties say they hope to negotiate final terms on the agreement no later than Sept. 1.
“We believe we can better serve our communities by creating a simpler, more seamless experience for people as they access our full continuum of care and services and provide them more rapid access to medical discoveries, treatments and cures," said James Hereford, Fairview's president and Chief Executive Officer.
According to the release, the final agreement is expected to include:
- "Annual support – ranging from $35 million in calendar year 2018 to $50 million by 2022 – to the University’s Medical School, dedicated primarily to tenure track faculty recruitment and fostering and expanding research in support of the next medical innovations and development of our future health workforce.
- "A single operating structure that includes academic physician leadership and fosters the engagement of the diverse physician and providers group that care for our communities.
- "Uniting the work of the joint care delivery system under one name and brand where today the University and Fairview maintain several clinical care identities.
- "University of Minnesota Physicians (UMP) will remain an independent organization that, following the University’s land-grant mission, will work with other partners and will maintain the University’s brand in the market. Fairview will also remain an independent organization and maintain business outside of the aligned clinical enterprise.
- "A focus on leading research, education and patient care aimed at discovering new approaches to improving health from primary care through complex and hospital care.
- "Continued capital investments to ensure the highest quality care settings – including an initial $111 million in work already underway at University of Minnesota Medical Center.
- "Performance incentives to foster enhanced patient satisfaction, quality and safety, access, efficient use of resources and other efforts to better the partnership."