Minneapolis-based Fairview Health Services, which is hoping to finalize its merger with Sioux Falls, S.D.-based Sanford Health by the end of May, would not renew its current agreement with the University of Minnesota if terms are not altered, Fairview CEO James Hereford told investors May 9.
The current agreement with the University of Minnesota, which opposes the merger between Fairview and Sanford, is due to end in 2026, but differences remain as to how it could be renewed. The two entities are in "active conversations" about new terms, Mr. Hereford said.
"We have certainly made an investment in academic medicine," he said of the current affiliation. "We would certainly not continue with this agreement in its current form."
On the investor call, Fairview management outlined the recent refusal by the University of Minnesota to accede to Fairview's request of $65 million in payment relief.
Regarding the tie-up with Sanford, Fairview management said debt levels would likely not increase once the merger is complete.
While the merger is due to close soon, it has been complicated by opposition both from the University of Minneapolis and by legislative moves involving the state's attorney general, Keith Ellison, and the Minnesota state House.
"We are in the process of working with the Minnesota AG weekly; it feels more like on a daily basis," Mr. Hereford said.