Background
For over 30 years, the University of Minnesota, M Physicians, and Fairview have partnered to advance health care in Minnesota, training generations of health professionals and delivering innovative care to communities statewide. This long standing collaboration has been central to medical education, research breakthroughs, and high-quality patient care across the state.
In January 2026, the three entities reached an agreement that brings greater clarity and stability to the relationship between them. Pending approval by the Board of Regents, this is an important milestone towards forging a path to improve the health of all Minnesotans. The agreement affirms and supports the University’s critical role in medical education, research discovery and clinical care and brings stability needed to build a long-term solution to meet Minnesota’s most pressing health and healthcare needs.
How did we get here - timeline
University of Minnesota enters into a 30-year agreement with Fairview Health, transferring ownership of the University hospital to Fairview. The University’s doctors form a clinical practice group, now known as M Physicians, to provide patient care.
Fairview announces it will end its existing partnership agreement with the University as of December 31, 2026, citing financial challenges.
The University puts forth several proposals, including sharing hospital ownership and a potential new partnership with Essentia, to ensure continuity of care for patients; no agreement is reached.
The Minnesota Attorney General’s Office appoints a strategic facilitator to help guide negotiations.
The University and M Physicians continue to present proposals and counter proposals to Fairview but talks stall.
The strategic facilitator declares that the negotiations will not result in a mutual agreement between the parties, and the Attorney General requests a report outlining the implications of unwinding the partnership. The University calls for continued discussions, believing an agreement is still attainable.
Fairview and M Physicians reach an agreement of their own, without the University’s involvement. The University objects to the impact of the reported deal on the future of Minnesota’s health and healthcare.
The Board of Regents (the University’s governing body) requests that all parties continue negotiating in good faith and work together for the future of health and healthcare across Minnesota.
The Attorney General announces that all sides will return to negotiations with a mediator.
The Attorney General appoints a mediator and two co-consultants to lead new discussions between all three parties, with a shared commitment to finding a path forward that supports the interests of all stakeholders.
All parties reach an agreement, which has been approved by the Board of Regents.