University of Minnesota, Fairview reach 10-year deal after lengthy negotiations
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MINNEAPOLIS (FOX 9) - After years of negotiations, a new agreement between the University of Minnesota and Fairview Health Services marks a turning point for academic medicine and health care in the state.
U of M, Fairview agreement
What we know:
The agreement, which was finalized after lengthy and often strenuous negotiations, secures financial support for the university’s health care programs over the next decade.
As part of the deal, Fairview will invest $1 billion in the University of Minnesota Medical Center campus and provide $50 million each year to the Medical School, with the possibility of more funding based on performance.
The deal also ends the university’s board representation at Fairview, reducing its guaranteed influence.
The "University of Minnesota" name will be removed from the teaching hospital in Minneapolis as well, reflecting a new phase in the partnership.
When reached for a comment, a spokesperson with Fairview told FOX 9 its academic medical centers will be renamed Fairview Riverside University Hospital, Fairview East Bank University Hospital and Fairview Masonic Children’s University Hospital, and the Minneapolis CSC will be renamed Fairview Minneapolis Clinics and Surgery Center at the University of Minnesota.
Dig deeper:
Fairview Health Services, based in Minneapolis, is one of Minnesota’s largest nonprofit health systems, operating 10 hospitals, dozens of clinics and a large pharmacy business.
About 1.2 million patients receive care through the joint operations of the university and Fairview, and the university’s medical education programs train about 70% of Minnesota’s physicians.
The agreement creates new committees for the university, Fairview and university physicians to work together on shared operations.
The deal comes after more than a year of pressure from Attorney General Keith Ellison for both sides to reach an agreement before the current affiliation ended in 2026.
What they're saying:
"We recognize that our community has experienced a prolonged period of uncertainty. We are deeply grateful for your steadfast commitment to our mission and to each other. These agreements provide much needed clarity and a path to restore trust while sustaining and strengthening health and healthcare in Minnesota," University of Minnesota President Rebecca Cunningham said in a statement on Tuesday.
What's next:
The agreement still needs approval from the Board of Regents, and pending its passage, would begin in January 2027.
The Source: Information provided by the University of Minnesota and Fairview Health Services press release.