University of Minnesota, Fairview and M Physicians reach agreement for medical school

The University of Minnesota, Fairview and M Physicians have reached a 10-year agreement to fund the U’s medical school and support physician training and research after seven weeks of intensive mediation. 

The three parties entered mediation with the Minnesota Attorney General’s Office last month, following weeks of uncertainty regarding funding for the state’s largest medical school. Attorney General Keith Ellison said that the agreement announced Monday builds on the parties' 30-year partnership.

They have agreed to work with the current mediation team to finalize the funding agreement, which establishes a framework for three separate contracts, according to an announcement from Ellison’s office.

Key components of the agreement include a $1 billion investment from Fairview in its medical facilities located on the University of Minnesota campus, approximately $600 million in funding for the medical school and clinical services from Fairview over the next decade, and a reaffirmation of the partnership between M Physicians and the U.

Fairview and the university currently operate a health system under a collaborative agreement, with ongoing negotiations between the two parties having taken place for several years.

Discussions involving the U, Fairview, and M Physicians have included Ellison's office since spring 2025. The purpose of these negotiations was to help the parties reach an agreement before the partnership between Fairview and the university expires at the end of 2026.

Together, the U, Fairview and M Physicians provide care for 1.2 million people each year and train 70 percent of Minnesota's doctors. 

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