University of Minnesota, Fairview Health Services, and U of M Physicians reach a new agreement

"First and foremost, it is a great day for Minnesotan's", said Dr. Carol R. Bradford, Interim Dean of the Medical School and Interim Executive Vice President for Health Affairs at the University of Minnesota. "It is a new ten-year (deal) and it's about our ability to deliver cutting edge care, educate health care professionals and create those biomedical discoveries that transform and save lives."

She said the approval of these agreements will bring to a close the strategic facilitation and mediation process that Attorney General Ellison started in April of 2025, with the support and participation of all three groups.

"Complex negotiations of this nature require coming to the table and offering some compromise and or concessions," Dr. Bradford said. "I would say that all parties came to the table and negotiated in good faith."

The University’s Board of Regents and the Boards of Directors of Fairview and M Health Physicians will meet shortly to vote on these agreements.

The University of Minnesota Medical School trains approximately 70% of all physicians in Minnesota, and is a proven hub of global scientific innovation and Minnesota's economic growth.

"It just speaks to the importance of the University of Minnesota in educating the health care workforce of today and tomorrow." Bradford said.

In response to this accomplishment, Attorney General Ellison released the following statement:

“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. They also realized that the costs of not reaching these agreements — to patient care, the careers of physicians and researchers, medical education, and Minnesota’s economy as a whole — were too great for us to bear. I thank and congratulate all the parties for demonstrating the resolve and tenacity to stick with these complex negotiations through thick and thin. This includes the leaders, senior staff, and board members of all three entities, as well as the staff of my office and the highly skilled mediation team of Judge Tom Fraser, Dr. Bill McGuire, and Lois Quam. Minnesotans owe them all a debt of gratitude."

"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 continued. "This accomplishment marks a fresh start, and amid the highly complex challenges facing healthcare in Minnesota, is an occasion for optimism about our future.”

Rebecca Cunningham, president of the University of Minnesota:

“We are pleased to finalize these agreements with our valued partners. Forged through good-faith negotiations and mutual compromise, these final agreements provide vital clarity and strengthen our collective future. These important agreements are a springboard to sustaining and strengthening the University’s commitment to educating tomorrow's health and healthcare workforce, discovering groundbreaking cures and improving the health of all Minnesotans. We are grateful to the Attorney General and mediators for their essential role in achieving this successful outcome.”

Key features of new 10-year partnership:

• $1 billion commitment from Fairview to invest in its medical facilities at the University of Minnesota Medical Center over 10 years to help improve services to patients and the practice environment for physicians, learners, and other healthcare workers.
• $50 million from Fairview in annual financial support for the Medical School, with the potential for additional funding based on system performance.
• Exploration of an innovative new program to support local physicians in increasing the likelihood that patients in Greater Minnesota receive timely diagnosis, appropriate treatment, and necessary care for complex medical conditions, regardless of their geographic location or circumstance.
• The new 10-year agreement takes effect on January 1, 2027.