AG Ellison to mediate UMN–M Physicians–Fairview talks; parties resume negotiations
The University of Minnesota, Fairview Health Services and M Physicians agreed to resume talks over the medical school’s future funding and clinical partnership with Minnesota Attorney General Keith Ellison managing the negotiations and naming a team to assist and help select a mutually agreed mediator. The move follows a contentious standoff — Fairview and M Physicians had announced a roughly $1 billion, “foundational and binding” framework they aim to finalize by end of 2025, while UMN regents unanimously criticized the pact as an overreach (calling it a “hostile takeover”), passed a resolution directing negotiations with the university and prompted the removal of M Physicians leader Dr. Greg Beilman from a UMN vice president post.
📌 Key Facts
- University of Minnesota, M Physicians and Fairview agreed to resume negotiations on the medical school’s future funding; Minnesota Attorney General Keith Ellison will manage the talks and a mutually agreed-upon mediator will be selected, and Ellison named a team to assist on Dec. 5, 2025.
- Fairview and M Physicians say they executed a binding term sheet and aim to complete a definitive clinical agreement by the end of 2025; the framework includes a $1 billion, 10-year capital commitment slated to start Jan. 1, 2027.
- Fairview says it remains committed to the previously announced 'foundational and binding' agreement, wants time-limited discussions that do not reopen settled terms, and cites urgency because physician departures from M Physicians are currently nearly 30% higher than average.
- The University of Minnesota Board of Regents passed a formal resolution (Nov. 13–14, 2025) criticizing M Physicians for negotiating the deal, asserting it exceeded its authority and directing M Physicians to negotiate with the University; the regents said the agreement was negotiated in secret and expressed 'grave concern' to the attorney general.
- Regents chair Doug Huebsch characterized the Fairview–M Physicians framework as a 'hostile takeover' of the U of M Medical School, and the board’s resolution was a step beyond prior administrative opposition letters.
- As part of the university’s response, UMN removed Dr. Greg Beilman from his interim vice president for clinical operations post on Nov. 19, 2025; Beilman remains interim CEO of M Physicians and retains his UMN faculty chair and surgical roles, and the regents affirmed President Rebecca Cunningham’s authority to mitigate conflicts.
- A scheduled Regents meeting on clinical partnership options was canceled after the parties agreed to renewed negotiations.
- Context and stakes: the current UMN–Fairview agreement expires in 2026, and Fairview owns facilities on the UMN Twin Cities campus, including the teaching hospital; AG Ellison said he supports the agreement as an 'important step' and identified remaining items to resolve such as graduate medical education and joint branding.
📰 Sources (6)
Keith Ellison names team to assist renewed UMN/Fairview negotiations
New information:
- Attorney General Keith Ellison announced the specific team that will assist/mediate the renewed negotiations between the University of Minnesota and Fairview Health Services.
- The announcement formalizes the mediation structure following the parties’ agreement to resume talks.
- Dated December 5, 2025, providing the latest procedural development in the negotiations.
U, physicians group, Fairview to return to negotiations on medical school
New information:
- UMN, Fairview, and M Physicians agreed Thursday night to resume negotiations on the medical school’s future funding.
- AG Keith Ellison will manage the talks with a mutually agreed-upon mediator to be selected soon.
- Fairview says it remains committed to the previously announced 'foundational and binding' agreement with M Physicians and wants time-limited discussions that don’t revisit settled terms.
- M Physicians states it intends to complete a definitive clinical agreement with Fairview by the end of 2025.
- A scheduled Regents meeting on clinical partnership options was canceled after the parties agreed to renewed negotiations.
- Fairview cites physician departures from M Physicians currently nearly 30% higher than average as an urgency factor.
- Context reiterated: the current U–Fairview deal expires in 2026 and Fairview owns facilities on the UMN Twin Cities campus, including the teaching hospital.
Negotiations resume after University of Minnesota regents alleged ‘hostile takeover’ of med school
New information:
- Regents chair Doug Huebsch characterized the Fairview–M Physicians framework as a 'hostile takeover' of the U of M Medical School.
- Regents sent a Nov. 11 letter to AG Keith Ellison expressing 'grave concern' that the agreement was negotiated in secret and oversteps Fairview/M Physicians authority.
- AG Ellison publicly stated he supports the agreement as an 'important step' and outlined next items to resolve (e.g., graduate medical education and joint branding).
- Specific terms reiterated: the framework includes a $1 billion, 10‑year capital commitment by Fairview and would start Jan. 1, 2027 when the current agreement expires.
- Regents passed a resolution asserting M Physicians exceeded its authority and affirming President Rebecca Cunningham’s power to mitigate conflicts; the interim M Physicians CEO, Dr. Greg Beilman, was removed from a university role.
UMN removes doctor from VP post after Fairview deal
New information:
- UMN ended Dr. Greg Beilman’s interim appointment as vice president for clinical operations on Nov. 19.
- Beilman remains interim CEO of M Physicians and keeps his UMN faculty chair and surgical roles.
- UMN said the move follows the Nov. 13 Board of Regents resolution addressing concerns about dual-role leaders and protecting the integrity of ongoing negotiations with M Physicians and Fairview.
- The Regents’ resolution asserted M Physicians acted “unlawfully,” overstepping its authority, and directed M Physicians to negotiate with the University.
- Fairview and M Physicians said last week they executed a binding agreement with a detailed term sheet and aim for a definitive agreement by end of 2025; the current U–Fairview deal expires in 2026.
- M Physicians noted AG Keith Ellison pushed for direct negotiations with Fairview in September.
University of Minnesota regents oppose $1B Fairview/physicians deal
New information:
- UMN Board of Regents unanimously passed a resolution criticizing the physician group for negotiating a $1 billion funding agreement with Fairview.
- The resolution escalates the dispute over the pact and signals potential implications for how Minnesota trains its doctors.
- This is a formal board action beyond prior administrative opposition letters.