University of Minnesota (UMN) and UMN Physicians have signed a letter of intent (LOI) to acquire four academic health facilities from Fairview Health Services.
The LOI involves the acquisition of East and West Bank campuses, M Health Fairview Clinics and Surgery Center and Masonic Children’s Hospital, all within M Health Fairview University of Minnesota Medical Center, in Minneapolis, Minnesota.
It has been approved by the UMN Board of Regents.
UMN aims to finalise the purchase of these facilities by 31 December 2027.
As per the terms of this LOI, the multi-year, multi-phased endeavour comprises a detailed plan for shared management and governance during the transition period.
Patients and staff can expect continuity in care and regular operations during the transition, with no immediate changes or redundancies planned post acquisition.
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M Health Fairview will continue to represent the partnership until new definitive agreements are finalised, with the future of the brand being a central topic in ongoing discussions.
The current agreements, which will expire on 31 December 2026, will not be renewed, while both the parties have started working towards new definitive agreements that are planned to be finalised by 30 September this year.
However, if the organisations fail to finalise an agreement within the proposed deadline, the negotiation period may be extended.
After receiving all the required regulatory approvals, which could extend into early 2025, the transition will commence with Fairview Health Services and the UMN joint management and governance of the four facilities.
This transitioning effort is expected to complete by 31 December 2027, after which UMN will assume full ownership of M Health Fairview’s facilities.
The latest decision to buy these academic health facilities from Fairview is part of UMN’s broader five-point plan to advance academic health.
UMN interim president Jeff Ettinger said: “This LOI, and the discussions ahead of us, are critical steps toward more fully integrating education, research, and patient care to better serve Minnesotans statewide.”