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The University of Minnesota is raising concerns about an agreement between Minneapolis-based Fairview Health Services and a group of physicians at the University of Minnesota Medical School.

On Wednesday, Fairview and University of Minnesota Physicians, a nonprofit clinical practice, announced they had reached a deal slated to begin on Jan. 1, 2027, to support physician training and fund the medical school for the next 10 years.

University officials criticized the proposal and said they were excluded from negotiations while Attorney General Keith Ellison, Fairview and UMP worked on the agreement without involving the university’s Board of Regents.

The university said in a statement that it rejects the proposed deal in its current form and that “this agreement strongly oversteps Fairview and UMP’s authority — and represents a hostile takeover of the University of Minnesota Medical School.”

Attorney General Ellison sent a letter to the U, Fairview and UMP on Sept. 12, instructing them to “meet and discuss ways they can protect the continuity and stability of the integrated academic and community health systems.” He emphasized these points in a follow-up letter sent to the university on Sept. 17.

Fairview and the U currently operate a health system under a collaborative agreement. This announcement presents yet another challenge in the ongoing negotiations between the two parties, which have been taking place for 

. Their partnership is set to expire at the end of 2026 unless a new agreement is reached.

The deal does not mean the door is closed for negotiations between the U and other partnerships, said Aimee Jordan, director of communications for Fairview.

“This is not about cutting out the university. There’s been extensive negotiations, and progress was stalled,” Jordan said. “The attorney general is requesting they come back to the table.”

On Tuesday, the university’s Board of Regents sent a 

 to Ellison sharing “grave concern” about the deal and warning of potential legal action, while also stating that they are “seeking to act in a judicious, sequenced manner.”

In September, Ellison directed Dr. Greg Beilman, M Physicians’ interim CEO, to begin negotiations directly with Fairview Health Services.

“As the outcomes of these negotiations began to take shape, M Physicians met multiple times with university leaders, including members of the Board of Regents, the university's general counsel, and the attorney general's strategic facilitator Lois Quam to keep all parties informed of the progress M Physicians and Fairview were making,” said Connor Myhre, manager of communication for UMP.

Myhre said that over the last two weeks, the groups met to address items included in the agreement’s written document. Representatives from the Minnesota Attorney General's Office were also present at the meetings.

“The terms also designate M Physicians as the steward for the health system's academic support payments for the University of Minnesota Medical School,” Myhre said. “This ensures that those funds directly support the work of the medical school, its faculty, research, and training mission for Minnesota.”

The Strategic Partnership for Minnesota’s Healthcare Future is a framework designed to ensure continuity of care. It aims to provide clarity for clinicians and guarantees that patients will not experience any changes in how or where they receive care, Fairview said in a statement.

Fairview also said that it will still own and operate the University of Minnesota Medical Center and Masonic Children’s Hospital, where M Physicians providers will continue practicing.

Ellison released a statement on Wednesday saying he welcomes the stability of the agreement and its partnership, as it also takes “a giant step away from a highly damaging unwind” between the U and Fairview.

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Erica Zurek

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Fairview and University of Minnesota Physicians, a nonprofit clinical practice, announced Wednesday they had reached a deal slated to begin on Jan. 1, 2027.

Exterior of the U of M health sciences building

University of Minnesota opposes Fairview and physicians group deal, calling it a 'hostile takeover' of medical school

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