U of M says Fairview deal is "hostile takeover" of med school
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The University of Minnesota Medical School would receive at least $50 million per year under a proposed 10-year partnership with Fairview Health Services. Photo: Anthony Souffle/Star Tribune via Getty Images
Fairview Health Services would remain a major funder of the University of Minnesota Medical School under a 10-year deal that the university's leaders are decrying as a "hostile takeover."
Why it matters: The proposal Fairview unveiled Wednesday would continue a partnership that has sustained the state's largest med school with $100 million in annual funding in recent years.
- The current partnership expires at the end of 2026, and Attorney General Keith Ellison said the U — which trains 70% of Minnesota's doctors — can't afford to lose this funding amid federal cuts to medical research.
By the numbers: The new partnership would be worth at least $50 million annually for the U, but Fairview would pay more — perhaps exceeding its current level of $100 million — if on-campus clinics and the Fairview system as a whole hit financial performance targets, the Star Tribune reported.
- University officials question how the deal "stabilizes" the medical school if Fairview's funding would be variable.
Friction point: Fairview reached the agreement with the U's independent physicians group — not the university itself, whose leaders say the agreement was negotiated behind their backs.
- The agreement effectively places two private entities in control of a public medical school and puts "the interests of a single regional provider and a physician group above Minnesotans," the U wrote in a statement to Axios.
What they're saying: A Fairview spokesperson told Axios that Ellison — whose office had been brokering talks — urged them to directly negotiate with University of Minnesota Physicians, which employs some 2,000 providers, "after months of stalled progress."
- Fairview also disputed the U's "takeover" characterization, saying the deal "does not alter" the university's authority over education, research and faculty appointments.
The other side: In a letter to Ellison, three university regents said the physicians group betrayed the U, "trading the Medical School's welfare for the security of physician compensation."
The intrigue: University of Minnesota Physicians said it has the legal authority to negotiate with Fairview — meaning the U can't block the deal.
- Yes, but: The U regents argued otherwise, calling for mediation with Fairview and the physicians.
Flashback: The agreement would resolve a long-running drama over a sometimes-messy partnership that began in 1997, when Fairview bailed out the U by buying its on-campus hospitals.
Catch up quick: In more recent years, the university objected to Fairview's pursuit of a merger with Sanford Health, called off in 2023, which could've given an out-of-state entity control over the U's state-funded programs.
- Fairview leaders grew to feel their level of financial support for the medical school was unsustainable — and were irked when the U entered into talks with another health system, Duluth-based Essentia.
- Meanwhile, faculty feared the loss of Fairview's support would put the medical school in "great jeopardy," the Strib reported.
What we're watching: Patients would see no changes to "where or how they receive care" because of the deal, Fairview promised in an FAQ.
- Less clear is whether the system's 10 hospitals and 60 clinics will continue to use the "M Health Fairview" branding — featuring the university's logo — after the current partnership expires.
Editor's note: This story has been corrected to reflect that the financial performance targets are for on-campus clinics and the Fairview system as a whole (not the medical school).