U of M, Fairview teaching hospital deal rebuked by Board of Regents

MINNEAPOLIS (FOX 9) - The University of Minnesota (U of M) Board of Regents is rebuking a plan for U of M Physicians to enter a 10-year clinical partnership with Fairview teaching hospitals.

A resolution released by the Board says U of M Physicians management entered a binding agreement with Fairview Health Services without consulting the university and that the agreement could harm its ability to serve Minnesota in its current form. 

READ MORE: University of Minnesota to buy Fairview teaching hospitals

U of M Board of Regents oppose Fairview hospital deal 

What they're saying:

The resolution called on the University of Minnesota Physicians group to negotiate "in good faith" with the University to restore its alignment with the University's mission. 

Part of the resolution reads as follows:  

"...the Board of Regents has determined that UMPhysicians leadership has exceeded its authority as the University's designated practice organization, violated its obligations to the University by negotiating important terms that impact the Medical School without consultation with the University, and is thereby endangering the future of all University health sciences schools."

The Board determined that U of M Physicians' leadership "exceeded its authority" and violated its obligations to the University and reaffirmed the president's authority to take necessary actions related to the Fairview- U of M Physicians' agreement. 

The other side:

The University of Minnesota Physicians shared the following statement on the latest meeting with the Board of Regents:

"University of Minnesota Physicians faculty physicians attended the Board of Regents meeting today, and we heard strong support for the clinical, research and education missions at the core of our practice, both present and in the future. This is encouraging as it is this tripartite mission that has guided our negotiation of a continuing non-exclusive relationship with Fairview. As faculty members of the University of Minnesota Medical School, led by faculty members of the University of Minnesota Medical School, we look forward to the University's participation at the table with us and Fairview. We are ready to continue the discussions we’ve been having, led by Strategic Facilitator Lois Quam."

What's next:

The Board said it will also review the Private Practice Plan policy to encompass all medical school locations across the University. 

2024 Fairview Health Services, University of Minnesota Physicians deal explained

The backstory:

Fairview Health Services, the U of M, and the University of Minnesota Physicians all signed a Letter of Intent (LOI) that outlined the university's intent to purchase the four health facilities: the East and West Bank campuses, M Health Fairview Masonic Children's Hospital and M Health Fairview Clinics and Surgery Center. 

The letter was initially approved by the U of M Board of Regents in 2024. 

The plan was to complete the full purchase of the facilities by Dec. 31, 2027. Fairview Health Services and the U of M said they planned to share management and governance with Fairview during the transition period. 

Fairview and the U of M merged in 1997 and have both operated the medical center since then. This comes after a failed merger between Fairview Health Services and Sanford Health, based in Sioux Falls, North Dakota. The merger was opposed by Minnesota lawmakers and the U of M, with concerns about an out-of-state company owning the university's teaching hospitals. The merger did not move forward after both companies stated a lack of support in the endeavor.