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Published June 21, 2024

Fairview confirms it will not renew current partnership with UMN

Six weeks before the agreement was automatically renewed, Fairview said they will be working with UMN to negotiate a new one.
Fairview+Riverside+Medical+Center+on+February+16%2C+2023.
Image by Photo by Shalom Berhane
Fairview Riverside Medical Center on February 16, 2023.

Fairview Health Services provided official notice Monday that it would not be renewing its current contract with the University of Minnesota, instead opting to work with the University to reach a new agreement before the current one expires.

The original agreement between Fairview and the University will still remain in effect until Dec. 31, 2026, giving both parties around three years to settle on a new contract before the current one expires.

The announcement will not change how the partnership is currently managed, and there are currently no changes being made to M Health Fairview, with Fairview and the University still operating under the joint brand.

Fairview CEO James Hereford said in an email to employees Monday afternoon this announcement is not an indication of ending the partnership with the University, but “this current agreement cannot be what carries us into our future.”

“Going forward, we will continue to negotiate in good faith to reach a new agreement, one that delivers on the unique promise of academic and community medicine,” Hereford said.

The University affirmed the partnership is not affected with this announcement, and that patients will continue to receive the same level of care in M Health Fairview facilities.

Our focus remains on delivering the health care services Minnesotans need and expect from us in these facilities,” the University said in a statement Monday.

The relationship between Fairview and the University began in 1997 when Fairview acquired the University’s East Bank Medical Center. Fairview has invested over $1 billion in University facilities since, including $100 million this year.

The current contract between Fairview and the University would have automatically renewed for the next 10 years on Dec. 31 if neither party objected to its renewal.

Regent Penny Wheeler said Tuesday the Board of Regents will be sharing an update on M Health Fairview as part of their December meeting.

Hereford said in his Monday email to employees he is scheduled to speak on Tuesday at a meeting for the University’s task force on academic health. The meeting will focus on the challenges Fairview is currently facing, chances for a new partnership and opportunities for more state-supported medicine.

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