The University of Minnesota Board of Regents, along with the board of directors for M Physicians, unanimously approved a 10-year agreement on Friday to fund the University’s medical school and support physician training and research programs. The agreement is set to take effect on Jan. 1, 2027.
Minnesota Attorney General Keith Ellison announced Tuesday that, after a tumultuous negotiation process and an epic multiyear journey, the new agreement includes a $1 billion investment from Fairview in its medical facilities on the University of Minnesota campus.
Fairview will also provide $50 million in annual funding for the medical school, which is less guaranteed funding compared to previous years.
Under the agreement, M Physicians will serve as the sole faculty practice group at the University’s medical school. Additionally, the three parties will explore a new program to support physicians practicing in greater Minnesota.
The U’s Academic Health Committee met on Thursday to discuss the deal. Dr. Greg Beilman, CEO of M Physicians, expressed his appreciation for the successful outcome.
“We brought this process to a productive conclusion for those that we are all here to serve: our patients, our communities, our physician faculty, the advanced practice providers, and many, many others,” Beilman said.
Fairview and the university operate a health system under a collaborative agreement, and they have engaged in ongoing negotiations for several years. Last fall, Fairview and M Physicians announced a deal to support physician training, academic health programs, and to fund the medical school for the next 10 years. But university officials criticized the proposal, arguing that they were excluded from negotiations while Attorney General Ellison and representatives from Fairview and M Physicians worked on the agreement without involving the university’s Board of Regents.
Mediated negotiations held earlier this year aimed to reunite the parties and reach an agreement before the partnership between Fairview and the U expires at the end of 2026.
Ellison released a statement Tuesday noting that the three organizations, which have partnered for 30 years, recognized that failing to reach an agreement would have significant repercussions for patients, physicians, researchers, medical education, and Minnesota’s economy.
Fairview’s CEO, James Hereford, also attended the Academic Health Committee meeting and commented on the future of healthcare delivery in Minnesota.
“Today’s agreements allow us to move forward with great clarity and stability in support of what has always mattered most, caring for patients,” Hereford said.
Together, the U, Fairview and M Physicians provide care for 1.2 million people each year and train 70 percent of Minnesota's physicians.
