Tensions are rising at the University of Minnesota as the Board of Regents accused its physicians and Fairview Health Services of orchestrating a “hostile takeover” of its medical school.
Last week, Fairview Health Services and the University of Minnesota Physicians (M Physicians) reached a new agreement governing M Health Fairview, a joint clinical enterprise run by Fairview Health Services, the University of Minnesota, and M Physicians.
The group’s prior governing agreement is set to expire at the end of 2026 and the new deal would begin on Jan. 1, 2027. The deal would provide $1 billion in funding for the University of Minnesota Medical Center over the next decade and maintain M Health Fairview clinics, a press release said.
However, the University of Minnesota’s Board of Regents issued a sharp rebuke of the agreement.
Doug Huebsch, chair of the Board of Regents, said the “proposed deal between Fairview and M Physicians would clearly have a profoundly negative impact on the University of Minnesota Medical School and Minnesota.”
“As Board leadership shared with the Attorney General earlier this week: this agreement strongly oversteps Fairview and M Physician’s authority — and represents a hostile takeover of the University of Minnesota Medical School,” he explained.
According to a newsletter issued by the University of Minnesota, the regents believe the agreement is “deeply one-sided” and “removes the University’s decision-making and destabilizes long-term funding for medical education and research.”
“In short, two private entities would determine the fate of our Medical School — a public asset that delivers education, research and patient care to the entire state,” added the statement.
In a press release about their agreement, M Physicians and Fairview said the framework would “preserve patient access and continuity of care” and “sustain investment in the University of Minnesota Medical Center, Masonic Children’s Hospital, and other key academic sites with a $1 billion capital commitment by Fairview.”
AG Ellison supports the agreement
Minnesota Attorney General Keith Ellison released a statement last week saying he supports the agreement.
“The agreement represents an important step toward a reimagined and revitalized partnership between Fairview, [M Physicians], and the University, who continues to be essential to and a central player in this process,” he said.
“Fairview and the University will now embark on an agreement to address the remaining items before them, including provisions for graduate medical education and joint branding. They have important work to accomplish for the entire state of Minnesota, and I look forward to supporting this process,” added Ellison.
Prior to the agreement being announced, the Board of Regents sent a letter to Ellison expressing its “grave concern,” saying “agreements reached in secret with actions taken by the boards of two private corporations does not engender public confidence that care has been taken with the public’s assets and its best interests in mind.”
“We are frankly shocked that the parties would orchestrate all this – while keeping the University – whose public land grant mission serves the entire state of Minnesota on the sidelines and in the dark,” the Nov. 11 letter said.
M Physicians CEO removed from university post
After the agreement was announced, the Board of Regents passed a resolution declaring that M Physicians exceeded its authority, violated its obligations to the university by negotiating without consulting them, and is now endangering the future of its various health schools.
The resolution also affirmed University of Minnesota President Rebecca Cunningham’s authority to “take necessary steps” to mitigate situations where there may be “conflicting loyalties and fiduciary duties.”
In turn, Greg Bielman, the interim M Physicians CEO, was removed from his position as the university’s vice president for clinical operations. He will, however, keep his position as a teaching faculty member of the school.
A university spokesperson told Alpha News “The Board of Regents at its Nov. 13 meeting unanimously passed a resolution directing the University to address concerns resulting from the recent actions of M Physicians leadership involving individuals serving in dual roles at the University of Minnesota and M Physicians.”
“These personnel changes were in direct response to those concerns and will help ensure the integrity of ongoing negotiations between the University, M Physicians and Fairview Health Services,” added the spokesperson.
Negotiations resume
Cunningham said in a message to students and staff Friday that the university has “reached an agreement to resume healthcare negotiations with M Physicians and Fairview, facilitated by a professional mediator.”
“This significant step forward gives me confidence we will reach an agreement that best serves the health and healthcare needs of Minnesota—not only for today, but for decades to come,” she wrote.
Ellison issued a press release saying his office will continue to manage the process with a mutually agreed-upon mediator.
“The progress all parties have made to date is significant, and I thank the parties for building on this work and recognizing that time is of the essence in bringing this matter to closure in a way that secures continuity of high-quality patient care, retention of world-class physicians, and long-term support for the Medical School that trains 70 percent of all doctors in Minnesota. This has always been and continues to be the goal,” he said.
According to the Pioneer Press, Fairview said it will participate in the negotiations but remains committed to the “foundational and binding” agreement announced last week.
