The University of Minnesota will be requesting nearly $1 billion from the Legislature this session to regain control of the health care facilities on campus from Fairview Health Services.
University President Joan Gabel says $300 million would be used to regain ownership of the University of Minnesota Medical Center, Masonic Children's Hospital, and the clinics and surgery center. The other $650 million would be used for operating expenses and payroll.
University leadership is opposed to the proposed merger of Fairview with South Dakota-based Sanford Health. Medical School Dean Dr. Jakob Tolar says control of Minnesota's academic health care assets by out-of-state-based entity is a non-starter for the school’s leaders.
University of Minnesota Senior VP for Finance and Operations Myron Frans says the school’s leaders believe this is what is best for the medical school.
“We believe that at this point the most important move that we can make would be for the University of Minnesota to be in charge of, and controlling, governing the flagship assets or campus hospitals going forward,” Frans tells WCCO. “And so we've asked the legislature at this point, subject to final Board (of Regents) approval for $950 million paid in two parts, the acquisition costs and the operation costs.”
Frans explains that the state’s highest educational institution shouldn’t be under the control of a South-Dakota-based system.
“If that went through, it would mean that the campus assets, the hospitals and the clinics and surgery center would ultimately be controlled by a South Dakota board from Sanford,” Frans says. “And so we believe it's better and really consistent with our land grant mission that the university direct control the healthcare for the state of Minnesota in its flagship academic health center.
Frans also says the school does plan to continue to work with Fairview through their contract in 2026.
The request to the Legislature will go before the University's Board of Regents on March 10.
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