(The Center Square) – The University of Minnesota, Fairview Health Services and University of Minnesota Physicians have finalized agreements establishing a new 10-year partnership that supporters say will strengthen Minnesota’s healthcare system.
The agreements, announced Tuesday by Minnesota Attorney General Keith Ellison, is the culmination of a mediation process Ellison first launched in 2025.
The clock was ticking as the parties worked to replace a 30-year partnership set to expire at the end of 2026.
Under the agreements, the University and M Physicians finalized terms making M Physicians the sole faculty practice group for the University of Minnesota Medical School’s Twin Cities campus.
The university and Fairview also reached an academic affiliation agreement allowing the medical school’s faculty, students, residents and fellows to continue teaching and conducting research within Fairview facilities.
That partnership serves about 1.2 million patients annually, trains roughly 70% of Minnesota’s physicians and supports medical research and economic development throughout the state, according to Ellison’s office.
The Democrat applauded the agreements, which his office has been helping to facilitate.
“These three organizations – the University of Minnesota, M Physicians, and Fairview –and their leaders have demonstrated remarkable commitment to ensuring Minnesota remains a world-class place for caring for patients, training the next generation of doctors and medical professionals, and building a career as a physician and researcher,” Ellison said in a statement.
He added that, if these agreements had not ben reached, the costs would have been “too great for us to bear.”
The new agreement includes a $1 billion commitment from Fairview to invest in facilities at the University of Minnesota Medical Center over the next decade, as well as $50 million annually in financial support for the medical school, with the potential for additional funding tied to system performance.
The parties also agreed to explore programs aimed at improving access to specialized care for patients throughout Minnesota and to establish new structures designed to strengthen collaboration among the organizations.
“We are pleased to finalize these agreements with our valued partners,” said Rebecca Cunningham, president of the University of Minnesota. “Forged through good-faith negotiations and mutual compromise, these final agreements provide vital clarity and strengthen our collective future.”
Fairview President and CEO James Hereford added the agreements offer long-term certainty for patients in Minnesota.
“The Strategic Partnership Agreement and the lease agreement for the Clinic and Surgery Center provide long-term certainty for the patient care provided there,” he said. “By resolving these foundational issues, we can turn our full attention to serving patients, supporting healthcare professionals, and addressing the significant issues that face health care delivery in Minnesota.”
The agreement takes effect Jan. 1, pending approval by the governing boards of the university, Fairview and M Physicians.
“These agreements, combined with the stability agreement that Fairview and M Physicians reached last fall, required compromise from all parties and will require goodwill, collaboration, and clear communication going forward,” Ellison said. “This accomplishment marks a fresh start, and amid the highly complex challenges facing healthcare in Minnesota, is an occasion for optimism about our future.”
