Minnesota AG Intervenes in Negotiations Between University of Minnesota, Essentia Health, and Fairview Health Services

Minnesota Attorney General Keith Ellison has stepped into the complex negotiations surrounding a proposed $1 billion academic medicine deal between the University of Minnesota, Essentia Health, and Fairview Health Services. The intervention aims to facilitate mediated discussions between the parties, addressing the challenges that have arisen in forming a new nonprofit care entity.

State-Mediated Negotiations

Attorney General Ellison announced a "new chapter in the negotiations" that will bring the three parties back to the table under the guidance of a strategic facilitator. This development comes after Fairview Health Services expressed opposition to the proposed structure of the new entity, which was initially announced by the University of Minnesota and Essentia Health in January.

The facilitator, to be chosen by the Attorney General's office with input from all parties, will establish communication guidelines, milestones, and deadlines for the discussions. The costs associated with the facilitator's services will be shared among the three organizations involved.

Proposed "All-Minnesota Health System Solution"

The University of Minnesota and Essentia Health unveiled plans in late January for a new nonprofit care entity, described as an "all-Minnesota health system solution." This proposal includes a five-year investment of $1 billion, aimed at addressing healthcare costs, workforce issues, and enhancing patient access to the university's clinical trials and research.

However, the plan has faced resistance from Fairview Health Services, which currently operates a joint clinical enterprise with the university known as M Health Fairview. This partnership is set to expire at the end of 2026, following unsuccessful attempts to negotiate a new contract.

Stakeholder Positions and Concerns

Fairview's leadership has expressed a preference for a "strategic partnership" that would allow the organization to maintain its independence. The university's attempt to purchase Fairview's 50% share of their joint clinics and surgery center venture was also rejected without a counterproposal.

Attorney General Ellison emphasized the importance of these negotiations to the public interest, stating, "Given the current status of the talks, the time pressure, and the importance of the public interest in getting this right, my office is taking a more active role."

The University of Minnesota has voiced support for Ellison's involvement, stating, "This integrated approach is stronger with Fairview Health Services and Essentia Health as our partners."

As discussions continue under the guidance of the state-appointed facilitator, all parties will need to navigate the complex landscape of healthcare partnerships, financial investments, and public interest considerations to forge a path forward for academic medicine in Minnesota.