The University of Minnesota has publicly denounced a deal between Fairview Health and the group of physicians at the university’s medical school, calling it a ‘hostile takeover’ of the med school. The deal, which would continue Fairview’s partnership with the U of M Medical Center for the next 10 years, has sparked controversy and concern from the university. The U of M claims the deal would make M Physicians ‘a captive entity to Fairview’ instead of an independent and key part of the university’s academic health center, which could also give Fairview significant leverage in any larger partnerships with the university. The agreement is separate from Fairview’s partnership agreement with the University of Minnesota, which has been in place since 1997. The U of M and Essentia Health proposed a new partnership earlier this year, but the plan was opposed by Fairview, which wanted to be involved in the three-way merger. Now, less than 14 months before the current Fairview and U of M deal is set to expire, the health care organization is trying to partner directly with the nonprofit clinical practice for the U of M Medical School. According to Fairview and M Physicians, the partnership, dubbed the ‘Strategic Partnership for Minnesota’s Healthcare Future,’ would begin on Jan. 1, 2027, and last for 10 years, with additional renewal periods. The two groups say they worked together to ‘develop a sustainable model that protects patients, providers, and academic medicine across the state.’ However, the U of M says the deal would have ‘a profoundly negative impact’ on the medical school and the state, and its leadership and the Board of Regents were never included in negotiations. The Board of Regents sent a letter to Minnesota Attorney General Keith Ellison expressing ‘grave concern’ over the deal and threatening legal action, if necessary. Ellison responded, saying he has a different understanding than the regents of how the process took place and what the deal entails, and that the most important step for the University now is to come to the table with Fairview on an agreement reflecting matters of mutual interest and importance to both parties. The university’s leadership and Board of Regents requested a standstill agreement among all parties until they can further discuss any potential impacts and solutions. It remains to be seen if Fairview and M Physicians will agree to that, or if all sides will come to the table to work out their issues without any legal intervention.
