As time trickles away, negotiations continue between the University of Minnesota and Fairview to fund the University’s medical school. 

The University’s current deal with Fairview expires Dec. 31, 2026. The negotiations come after regents voted on a new budget in June that saw reductions in academic program funding and increases in tuition.

Several medical school department chairs, in a June letter to the University’s Board of Regents, warned that the medical school is in “great jeopardy” if a new deal is not reached this year, according to the Star Tribune.  

Essentia Health withdrew from merger negotiations for a new statewide nonprofit healthcare system last month, but remains in discussion with the University and Fairview, according to a University statement. 

University President Rebecca Cunningham announced the proposed partnership with Essentia in a January statement to the University, with the Attorney General’s office stepping in in March to facilitate negotiations between the two organizations and Fairview.

The University affirmed its commitment to negotiations with Fairview in the statement, but maintained any agreement would reshape the current system.

“The University remains committed to achieving a solution that includes a relationship with Fairview, but it will be different than the status quo,” the statement read. “We believe there is room for continued conversation with Essentia Health, and we invite other providers to help us build solutions to meet the urgent healthcare challenges facing the state today and in the future.”

An Essentia Health spokesperson said in a statement that the organization remained committed to working with the University moving forward. 

“Essentia Health leadership came to this conversation with a focus on strengthening Minnesota’s health care workforce through the all-Minnesota solution and looks forward to continue working with the University of Minnesota toward that goal,” the statement read. 

The slow pace of negotiations is not unusual, according to a statement from Lois Quam in the attorney general’s office.  

“It’s normal and to be expected that in working to reach an agreement on an issue as complex as this one, negotiations would take some time,” the statement read. “The parties are to be commended for the great staying power they’ve shown and for staying at the table.” 

Fairview informed the University of its intention not to extend the current agreement in November 2023. The announcement followed failed merger discussions between Fairview and Sanford Health, with some at the University criticising the merger. 

The University’s medical school is responsible for training 70% of physicians in the state. Under the current deal, the University receives approximately $100 million a year in funding from Fairview. 

It is unclear what will happen to medical school funding if a new deal is not reached.