The University of Minnesota Board of Regents is formally reprimanding the University's physician's group over the proposed partnership deal it reached with Fairview Health systems this week.
The agreement follows years of negotiating, and it excluded the University's input, outraging leaders who called it a hostile takeover.
University President Rebecca Cunningham says reports that the University walked away from talks are untrue.
"In September, the strategic facilitator declared an impasse and sent the University and all parties home," said President Cunningham. "We did not walk away."
University of Minnesota finance officials testified that the $1 billion Fairview is promising to invest in the University's academic hospitals and clinics is grossly inflated, that the plan is destablizing, and emphasizes revenue over teaching and discovery.
"The proposed agreement provides insufficient investment in the University of Minnesota Medical Center and insufficient levels of academic support that would fail to sustain the medical school," Head of Finance and Operations Gregg Goldman explained.
Doctor and Regent Ruth Johnson says it doesn't support the sustainability of the University's medical school, and says that should be deeply concerning to all Minnesotans.
"It will cause long term damage to the state's health, and to our healthcare workforce development and sustainability, to our economy," Johnson adds. "And have an outside impact to cities, towns, rural areas, and tribal areas across our state."
Minnesota Attorney General Keith Ellison supports the deal, and pushed for the meeting in September to protect the complex M Health Fairview affiliation and essential medical education funding.
“I welcome the stability agreement that Fairview and University of Minnesota Physicians announced today because it creates stability for the 1.2 million patients that rely on these services and tells physicians practicing at the University of Minnesota Medical Center that they can rest assured that Minnesota remains a world-class place for their practice," a statement provided to WCCO from Ellison's office explains. "I am pleased that the agreement provides a commitment of $1 billion in capital funding for the medical facilities because when I toured those facilities in August, I saw both the outstanding care being provided and a need for fresh resources."
Failure to resolve the dispute carries the risk of a highly damaging unwind of the entire health system partnership, potentially jeopardizing hundreds of millions in funding for the University's medical school and the state's capacity to train future doctors.
"I urge all parties to stay calm and focus on the long-term objectives of keeping Minnesota as one of the top states in America for affordable, accessible, high-quality medical care and world-class academic research," Ellison continued. "My door remains open to the University of Minnesota and its leadership: as a U of M alumnus, the parent of an alumna, and an instructor in two different University schools, I deeply respect and am grateful for the opportunity the University provided my family and me."