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 negotiations over the medical school’s future funding with Attorney General Keith Ellison managing talks and a mutually agreed mediator to be selected, after Fairview and M Physicians announced a purportedly binding $1 billion, 10‑year framework beginning in 2027 that UMN regents condemned as a "hostile takeover" and said exceeded the physician group's authority. Regents removed Dr. Greg Beilman from a UMN vice president role amid concerns about dual positions, Fairview is pushing for time‑limited talks that won’t revisit settled terms, M Physicians aims to finalize a definitive clinical agreement with Fairview by the end of 2025, and the current University–Fairview arrangement expires in 2026.
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📌 Key Facts
- The University of Minnesota Board of Regents unanimously passed a resolution criticizing M Physicians for negotiating a $1 billion, 10‑year funding framework with Fairview that would begin Jan. 1, 2027, calling the framework a 'hostile takeover' and asserting M Physicians exceeded its authority.
- Regents sent a Nov. 11 letter to Attorney General Keith Ellison expressing 'grave concern' that the agreement was negotiated in secret and overstepped Fairview/M Physicians’ authority; the board said this was a formal action beyond prior administrative opposition.
- UMN removed Dr. Greg Beilman from his interim vice president for clinical operations role on Nov. 19; he 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.
- 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 capital commitment over 10 years.
- UMN, Fairview and M Physicians agreed to resume negotiations on the medical school’s future funding, with Attorney General Keith Ellison managing the talks and the parties agreeing to select a mutually agreed‑upon mediator soon; a scheduled Regents meeting on clinical partnership options was canceled after the agreement to return to talks.
- Ellison has publicly called the framework an 'important step,' outlined outstanding items to resolve (including graduate medical education and joint branding), and earlier encouraged direct negotiations between M Physicians and Fairview.
- Fairview says it remains committed to the previously announced 'foundational and binding' agreement, wants time‑limited discussions that do not revisit settled terms, and cites urgency because physician departures from M Physicians are currently nearly 30% higher than average.
- Context: the current University–Fairview clinical agreement expires in 2026, Fairview owns facilities on the UMN Twin Cities campus (including the teaching hospital), and the outcome has potential implications for how Minnesota trains its doctors.
📰 Sources (5)
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.