The University of Minnesota is looking to regain ownership of its Twin Cities campus health care facilities from Fairview Health Services. A nonbinding letter of intent has been signed by the University of Minnesota Regents and Fairview, which indicates that both parties are willing to move forward with discussions aimed at establishing a new relationship with the University’s eventual ownership and control of the University of Minnesota Medical Center.
This initiative is part of a broader effort by the University to reacquire its medical center, which was previously owned by Fairview. This comes after Fairview terminated its existing partnership with the University last fall and after an unsuccessful proposed merger between Fairview and Sanford Health. Last year, University officials expressed interest in acquiring the medical center and pledged to seek state funding for this purpose.
The letter signifies a mutual agreement between the two parties to work towards a transaction in which the University would pay Fairview 51 percent of an agreed purchase price by the end of 2024, with the transaction set to be finalized by the end of 2027. However, details about a purchase price have not been included in this nonbinding letter of intent.
The board of Fairview and University of Minnesota Physicians has already approved this letter, indicating that both parties are committed to working together towards a new agreement that will benefit both organizations. The medical center encompasses hospitals on both banks, M Health Fairview Clinics and Surgery Center, and Masonic Children’s Hospital. This is a developing story, and updates will be provided as new information becomes available.