University of Minnesota regents say physicians group exceeded authority in Fairview agreement
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The University of Minnesota’s Board of Regents unanimously passed a resolution Thursday stating that University of Minnesota Physicians violated its obligations to the university and endangered the future of the university’s medical school when it negotiated a recent agreement with Fairview Health Services.
The resolution said the physicians group overstepped its authority as the university’s clinical faculty practice by negotiating terms to fund the university's medical school for the next 10 years without prior consultation with the U.
It gives the university’s president authority to explore the “likely reduction in academic or mission support funding,” assess branding and trademark implications and review the Board of Regents’ medical school policy.
The board’s resolution urges UMP to negotiate “in good faith” with the university so the physicians group can continue as the designated clinical practice after Dec. 31, 2026. The board will also assess the consequences and possible solutions arising from the “conflicting loyalties and fiduciary duties” created by UMP’s management actions and, if necessary, implement “steps to mitigate those conflicts.”
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University officials said Wednesday that they were excluded from closed-door negotiations between Fairview, UMP and the Minnesota Attorney General’s Office.
But in a statement released Wednesday, Attorney General Keith Ellison noted that the university was aware of negotiations between Fairview and UMP. He said that the U had informed his office that it no longer wanted to negotiate with Fairview and was interested in exploring other options.
Dr. Rebecca Cunningham, the U’s president, said at Thursday’s meeting that the university did not abandon negotiations in September.
“The strategic facilitator declared an impasse and sent the university and all parties’ home. We did not walk away. The strategic facilitator then called the other parties together,” Cunningham said. “We repeatedly requested that a three-party negotiation would yield the best results for the state of Minnesota, and yet the strategic facilitator continued to exclude us for seven weeks in the same way that they excluded Essentia.”
In January, the university and Duluth-based Essentia Health proposed a solution for Minnesota's health system. The proposal ended in discussions with Lois Quam, a strategic facilitator, at the request of Attorney General Ellison.
The university shared a letter with MPR News from Dr. Cunningham and the board, sent to Ellison on Sept. 16, which said, “The University is not resigned to a state of impasse; we continue to pursue other paths to fulfill our public health mission, and we remain open to inviting Fairview to join us.”
Fairview Health Services told MPR News on Wednesday that the deal with UMP does not signify the end of negotiations between the university and other potential partners, and that the attorney general is requesting that they return to the negotiating table.
Faculty from the University of Minnesota Physicians attended the Board of Regents meeting on Thursday and said in a statement that they will continue to oversee their own operations and administration and are eager to maintain discussions with the university.
