The University of Minnesota and Fairview Health Services, both based in Minneapolis, are working through new agreements to bring facilities shared between the two parties under the University of Minnesota's wing.
"It's a difficult point in our relationship," Jakub Tolar, dean of the University of Minnesota Medical School, said during a June 13 Special Committee on Academic Health meeting. "We are fully committed, both parties, to sharing the data. We expect that the data on the letter of intent … will be shared fully and that we will have through summer, we will develop models that can then be actionable in the fall."
In February, the University of Minnesota shared its intention to buy the four academic health facilities that make up M Health Fairview University of Minnesota Medical Center: the east and west bank campuses, the M Health Fairview Clinics and Surgery Center and M Health Fairview Masonic Children's Hospital. All facilities are in Minneapolis.
Both parties signed a letter of intent for a "multi-year, multi-phased" sale, with a purchase completion expected by the end of 2027.
This action would end the affiliation between the university and university-affiliated physicians and Fairview, which partnered in 2018 to create M Health Fairview. The affiliation was expected to renew automatically for another 10 years in 2027 unless there was an objection from either party to renew by the end of 2023.
During a May 9 committee meeting presentation, a two-step transaction was presented.
In the first phase, occurring in 2025, the university would hold 51% ownership of the assets and Fairview would hold 49%. The two would operate the assets as a joint venture prior to moving into phase 2.
Phase 2, which would happen in 2027 or earlier, would make the university the single owner and operator of the University of Minnesota Medical Center facilities.
"Even in Phase Two, it is anticipated that the University and Fairview will have some continued contractual relationship to advance specialized patient care," according to a presentation slide from the meeting. "The transaction would be subject to regulatory review and approval by the University's Board of Regents and the Fairview Health Services Board."