The University of Minnesota is close to reworking its partnership with Fairview Health Services, which owns the hospital on the university’s Minneapolis campus.
The Board of Regents on Friday agreed to a one-month extension of their 2013 M Health agreement, which once was seen as a precursor to a merger that never materialized.
Regents last year voted against renewing the M Health agreement. With the short-term extension, it’s now due to expire at the end of June.
University President Eric Kaler said that Fairview, under new leadership, is no less committed than the U to making the relationship work. But, he said “there are still key issues that need to be resolved.”
The U has been disappointed with the amount of money M Health has generated. Both sides have said they want to establish a destination for clinical care, with better facilities and simpler contracts.
Regent Darrin Rosha said he’s concerned about entering into another multi-year deal that does not work for the U.
Kaler responded that there is “a historically unique opportunity for us to move forward together, and we don’t intend to screw it up.
“We know that we cannot achieve the aspirational goals we all have for the university and for the delivery of healthcare and our research without a strong clinical partner,” Kaler said.
U leaders said Fairview’s board of directors is expected to vote June 14 on a letter of intent that outlines the terms of the new deal. The regents would vote soon after that.
Fairview and the U and University of Minnesota Physicians have been loosely affiliated since Fairview bought the school’s hospital in 1997. Under the 2013 M Health agreement, the physicians group’s revenue is up, costs are down and health outcomes have improved.
Still, the U is confident it can do better.
“We are close to … having a true partner,” medical school dean Jakub Tolar said Friday. “I am very cautiously optimistic.”
Fairview said in a written statement that it’s committed to reaching an agreement as soon as possible:
“Our agreement will allow us to come together to operate as a seamless system that makes care at every level easier to access and simpler to use. It will help us attract and retain clinical and scientific talent, and provide the best possible care for our patients and everyone we serve.”