Latest Updates

1.30.2026 Update

The Board of Regents approved our agreement with M Physicians and Fairview, marking an important milestone that brings clarity and stability to the various dimensions of our relationship for the next 10 years.

This is a critical step, but it is not the end of the journey. We must continue to creatively and collaboratively explore multiple paths to address Minnesota’s urgent health care needs — including fostering additional and expanded partnerships, strengthening our medical school and schools of health sciences, and ensuring you have access to learn and practice in modern facilities. The path ahead requires a leader with demonstrated success leading organizations through transition, elevating national excellence and forging the next chapter of how the University of Minnesota advances its healthcare mission to fulfill its commitment to Minnesota.

I am pleased to announce that Dr. Carol Bradford will join the University of Minnesota as Interim Executive Vice President for Health Affairs (EVPHA) and Dean of the Medical School, beginning February 16. In this newly defined role, working with the health science deans, she will lead all aspects of our healthcare enterprise, positioning it for success.  As EVPHA, she will report to the President’s Office; as Dean, she will work closely and have a reporting relationship with the Provost. 

See her remarks to the Medical School and Schools of Health Sciences:
 

The University of Minnesota looks forward to negotiations in mediation with M Physicians and Fairview. We are hopeful that together, we can reach an agreement that best serves the health and healthcare needs of Minnesota—not only for today, but for decades to come.  There is hard work ahead of us and trust to rebuild. We are eager to start that process.

In mediation, we are eager to collectively and creatively explore all options to define a mutually agreeable path forward.  Any final agreement must lead to…

  • Better patient care in modern, up-to-date University of Minnesota Medical Center facilities.
  • Recruitment and training of the next generation of health professionals to serve all of Minnesota.
  • Consistent and sustained access to qualified care in both urban and rural settings.
  • Investment in research that leads to life-saving and life-sustaining cures.

There is hard work ahead of us and trust to rebuild but it’s necessary to do what’s right for Minnesota. 

Learn more about why this matters 

How did we get here - Timeline

January 1997:Agreement with Fairview
University of Minnesota enters into agreement with Fairview, transfers the University hospital building to Fairview. Medical School’s clinical practice organization, now known as
M Physicians, is established.
November 2023: Non-Renewal Notice
Fairview notifies the University that it will not renew the terms of the existing agreement, citing an “unsustainable” financial commitment to the University’s teaching hospitals.
February 2024: Letter of Intent
University and Fairview sign letter of intent (proposal #1) outlining the University’s intent to purchase UMMC facilities.
November 2024: Fairview Leaves Negotiations
Fairview pulls out of negotiations and LOI is terminated.
December 2024: Offer Rejected
University provides offer to Fairview to purchase UMMC facilities (proposal #2). Fairview publicly rejects the offer; no counter-offer is made.
February 2025: Essentia Proposal
University and Essentia Health present proposal to Fairview (proposal #3); Fairview rejects proposal and informs staff it will not engage in related negotiations. University provides offer (proposal #4) to purchase Fairview’s interest in Clinics and Surgery Center Joint Venture (CSC-JV); Fairview rejects offer March 6.
March 2025: Negotiations Begin
The University, Essentia, and Fairview agree to enter into strategic facilitation negotiation process with the Attorney General’s Office.
April 2025: Attorney General Facilitation
Lois Quam announced as strategic facilitator and given the charter, “The strategic facilitator is charged with guiding conversations among Fairview, Essentia, and the University to address how they can work together on a path forward.”
Summer 2025: Proposals and Counters
June: University receives proposal from Fairview.

July: University sends a counterproposal related to the CSC-JV (proposal #5). Strategic facilitator informs the University that Essentia will no longer be part of the process; University objects.

University submits revised joint venture proposal (proposal #6).

August: University makes verbal offer to purchase UMMC. University and M Physicians submit counter-proposal to Fairview (proposal #7).
September 2025: Stalled Progress

September: University and M Physicians present counter-proposal that is never discussed (proposal #8).

September 8: Strategic facilitator declares an impasse.

September 12: Attorney General demands an “unwind” report from all parties.

September 16:Board of Regents send a letter to the Attorney General reaffirming the University’s stance that it is not resigned to an unwind and calls for continued discussions.

September 25: Attorney General communicates that he has directed M Physicians to negotiate with Fairview.
October 2025: Reaffirmed Commitment
October: Attorney General and strategic facilitator appear at Board of Regents meeting, reiterating their commitment to the Medical School.
November 2025:

November 6: Strategic facilitator informs the University that Fairview and M Physicians have come to an agreement over a term sheet.
M Physicians board approves term sheet over University objection and without sharing agreement.

November 7: Attorney General’s Office holds meeting between Fairview, the University, and M Physicians; parties inform the University that a “binding agreement” has been reached, refuses to provide term sheet to the University.

November 11: Board of Regents send letter to Attorney General expressing concerns. Attorney General replies expressing hope to return to negotiations.

November 13: Regents unanimously pass a resolution stating M Physicians leadership violated obligations and exceeded authority, endangering the Medical School.

November 17: Attorney General requests meeting with Board of Regents leadership to discuss healthcare negotiations. Board leadership agrees. President Cunningham sends email to M Physicians CEO and Fairview CEO requesting continued conversation and mediation.

November 21: Attorney General announces the University, M Physicians, and Fairview will return to the negotiating table for mediation.