Health

University of Minnesota will return to negotiations with Fairview and M Physicians

After several weeks of turmoil over funding the state’s largest medical school, all parties will soon return to the negotiating table.

Last week, Fairview Health Services and University of Minnesota Physicians, a nonprofit clinical practice for the faculty of the University of Minnesota Medical School, announced they had reached a deal to support physician training and academic health programs and fund the medical school for the next 10 years.

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

Both Fairview and the Minnesota Attorney General's Office told MPR News that this agreement does not mark the end of negotiations between the university and the attorney general, and they requested a return to the negotiating table.

On Friday, Attorney General Keith Ellison released a statement announcing the University of Minnesota, Fairview Health Services, and M Physicians are returning to the negotiating table. A mutually agreed-upon mediator will be selected soon, while strategic facilitator Lois Quam will remain involved in the process.

“Time is of the essence in reaching the agreements to secure patient care, doctor retention, and support for U of M Medical School,” Ellison said in a statement released Friday. “This continues to be the goal.”

University officials expressed their eagerness on Friday to begin the negotiation process, acknowledging the hard work ahead to rebuild trust.

Fairview and UMP are committed to the 10-year binding agreement already established between them. They will engage in limited but focused discussions with the university as part of the attorney general's facilitation and mediation process.

“As we have said many times, stabilizing the faculty practice is an urgent priority. Physician departures from UMP are already nearly 30 percent higher than average, creating real risks for patient care. This moment requires focus and steadiness,” Fairview said in a statement on Friday.

The physicians group aims to finalize the clinical agreement with Fairview by the end of the year.

In an email to university faculty, staff and students on Friday, Dr. Rebecca Cunningham, the U’s president, affirmed her commitment to negotiating in good faith and has acknowledged the concerns raised by doctors, nurses, pharmacists, dentists, and other health care professionals and staff.

Since 2024, nearly 200 physicians have left UMP, according to a letter from Fairview Health Services CEO James Hereford, sent to Cunningham on Thursday and shared with MPR News.

The U’s medical school trains 70 percent of the doctors practicing in Minnesota and provides care to over 1 million people across the state.