U of MN, UMP and Fairview Reach 10-year Agreement

January 30, 2026

After lengthy negotiations, the University of Minnesota, Fairview Health Services, and University of Minnesota Physicians (UMP) finally reached a 10-year mediation agreement on January 26, the Minnesota attorney general’s office announced.  

The agreement provides funding support for the University of Minnesota Medical School, including the training of future physicians and care providers, and support for its acclaimed medical research programs  

The agreement also ensures continuity of care between patients and their physicians and care providers, and secures patient access to world-class services at Fairview facilities on the University of Minnesota campus and throughout the Twin Cities. 

Key features of the agreement include: 

• $1 billion commitment from Fairview to invest in its medical facilities on the University of Minnesota campus over 10 years to help improve services to patients and the practice environment for physicians and other healthcare workers. As part of these investments, the University of Minnesota and Fairview will explore expansion of physical capacity at the Academic Medical Centers and other approaches to enhance care through state-of-the-art facilities. 

• Fairview will assume operations for the Clinics and Surgery Center (CSC), and a new lease will be negotiated with the University of Minnesota, to foster integration, delivery, and management of services for patients, physicians, associated care providers, and related staff. Fairview will also forgive the operating debt the CSC owes to Fairview from the existing joint venture and assume all annual operating losses. These steps will support operations at the CSC and preserve patient care at that facility. 

• $50 million from Fairview in annual financial support for the medical school, with the potential for additional funding based on system performance. Fairview also assumes additional financial responsibility for clinic services, bringing its 10-year commitment to the medical school to approximately $600 million before additional performance-based funding. 

• The reaffirmation of the University of Minnesota’s designation of UMP, the group representing medical school faculty and affiliated physicians. UMP remains the sole faculty practice group, affirming its ability to continue their academic work as they practice in Fairview facilities and advance the University of Minnesota’s commitment to delivery of care, medical education and training, and important medical research. 

• Exploration of an innovative new program to support local physicians in increasing the likelihood that patients in Greater Minnesota receive timely diagnosis, appropriate treatment, and necessary care for complex medical conditions, regardless of their geographic location or circumstance. Fairview has committed an initial $10 million in funding for this initiative. 

• New structures to strengthen the partnerships between the three organizations:  

• The University of Minnesota and Fairview will establish a new Leadership Council, consisting of two members each from University of Minnesota leadership and the Fairview Board of Directors, to discuss important strategic matters and mutual needs, and ensure an effective collaboration. 

• The University of Minnesota and UMP will establish new collaborative vehicles for achieving their shared land-grant mission of high-quality clinical care, advanced research, teaching, and healthcare workforce development.