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Fairview, U of M signal willingness to continue medical partnership

Last month, Fairview informed the university that it did not intend to renew its current partnership, ending in 2026.

MINNEAPOLIS — EDITOR'S NOTE: The video above originally aired in November 2023.

Fairview Health Services and the University of Minnesota may be sticking together after all, despite a notification from Fairview last month that it planned to end its current contract with the U.

"Fairview Health Services and the University of Minnesota continue to work together toward an agreement for a new and reimagined partnership," the two organizations said in a joint statement released Wednesday.

The university partnered with Fairview on the "M Health Fairview" brand in 2018. However, last month, Fairview notified the university that it would not renew its current agreement that expires at the end of 2026, saying its "level of financial support" to the university "threatens the sustainability" of its health care system.

"While current agreements will expire at the end of 2026, both the University and Fairview see benefits to partnering, particularly for the patients and communities we serve and for our people, who provide world-class health care," read Wednesday's joint statement.

The organizations pointed to work at the state government level that could support an ongoing M Health Fairview partnership.

"The Governor’s Task Force on Academic Health presents a unique opportunity for the state to support academic medicine and the training of health professionals to meet Minnesota’s needs now and into the future," the statement said. "We appreciate state leaders' attention, and the role the state may play, in these critically important issues. The January deadline for the Task Force report to the Legislature also creates urgency to the work the University and Fairview are earnestly engaged in to define the organizations' future relationship. We are aligned on several recommendations the Task Force could make, including increasing Medicaid reimbursement rates to appropriately cover the cost of care and increasing the state's academic support to advance the University's health-related research and education. Fairview and the University will provide additional updates in the coming weeks as more detail becomes available."

Fairview's November decision not to renew the U of M contract beyond 2026 came just months after a failed merger between Fairview and South Dakota-based Sanford Health.

While talks continue, Fairview officials said nothing will change for their patients or employees under the "M Health Fairview" brand.

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