University of Minnesota, Fairview, and M Physicians reach agreements to cement new 10-year partnership

University and M Physicians reach definitive agreement that supports vital research, education and clinical missions; University and Fairview reach agreements on academic affiliation to drive world-class medical research and education and an agreement on the Clinic and Surgery Center to be finalized shortly

Agreements operationalize January 2026 mediated agreement to benefit patient care, fund Medical School, ensure world-class research and medical education in Minnesota

Definitive agreements bring to a close the strategic-facilitation and mediation process Attorney General Ellison started in March 2025

Partnership between Fairview, M Physicians, and the University of Minnesota provides care for 1.2M people a year, trains 70 percent of Minnesota doctors, and serves as hub of scientific innovation and economic growth for Minnesota

June 9, 2026 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that the University of Minnesota, Fairview Health Services, and University of Minnesota Physicians (M Physicians) have reached the agreements necessary to cement and operationalize the new 10-year partnership between the parties announced in January 2026.

The University of Minnesota and M Physicians have reached a final agreement that secures M Physicians as the sole faculty practice group of the University of Minnesota Medical School–Twin Cities Campus, among other items. M Physicians cares for patients from all of Minnesota's 87 counties. The University of Minnesota and Fairview have reached an academic-affiliation agreement, which provides for the Medical School faculty, students, residents and fellows to conduct teaching and research in the Fairview health care facilities. Fairview operates the Clinical and Surgery Center on the University campus, where M Physicians cares for patients, and Fairview and the University, as the building owner, have concluded a lease agreement, with mutually agreed-upon binding arbitration on the final terms to be concluded shortly. Fairview and M Physicians reached a bilateral clinical services agreement in November 2025, with some terms amended by the parties in these agreements.

The University’s Board of Regents and the boards of directors of Fairview and M Physicians will meet shortly to vote on these agreements. The approval of these agreements will bring to a close the strategic facilitation and mediation process that Attorney General Ellison started in April 2025, with the support and participation of all three parties.

Approximately 1.2 million people a year receive care, often highly specialized, in the Fairview system, which includes 1,500 physicians — of whom 1,200 are University of Minnesota faculty physicians — and 500 advanced practice providers affiliated with M Physicians, along with 1,100 physicians and 400 advanced practice providers affiliated with Fairview and other providers in Fairview clinics. The University of Minnesota Medical School trains approximately 70 percent of all physicians in Minnesota and is a proven hub of global scientific innovation and Minnesota's economic growth.

In response to this accomplishment, Attorney General Ellison released the following statement:

“These three organizations — the University of Minnesota, M Physicians, and Fairview — and their leaders have demonstrated remarkable commitment to ensuring Minnesota remains a world-class place for caring for patients, training the next generation of doctors and medical professionals, and building a career as a physician and researcher. They also realized that the costs of not reaching these agreements — to patient care, the careers of physicians and researchers, medical education, and Minnesota’s economy as a whole — were too great for us to bear.

I thank and congratulate all the parties for demonstrating the resolve and tenacity to stick with these complex negotiations through thick and thin. This includes the leaders, senior staff, and board members of all three entities, as well as the staff of my office and the highly skilled mediation team of Judge Tom Fraser, Dr. Bill McGuire, and Lois Quam. Minnesotans owe them all a debt of gratitude.

These agreements, combined with the stability agreement that Fairview and M Physicians reached last fall, required compromise from all parties and will require goodwill, collaboration, and clear communication going forward. This accomplishment marks a fresh start, and amid the highly complex challenges facing healthcare in Minnesota, is an occasion for optimism about our future.”

Rebecca Cunningham, president of the University of Minnesota, said:

“We are pleased to finalize these agreements with our valued partners. Forged through good-faith negotiations and mutual compromise, these final agreements provide vital clarity and strengthen our collective future. These important agreements are a springboard to sustaining and strengthening the University’s commitment to educating tomorrow's health and healthcare workforce, discovering groundbreaking cures and improving the health of all Minnesotans. We are grateful to the Attorney General and mediators for their essential role in achieving this successful outcome.”

James Hereford, President and CEO of Fairview Health Services, said:

“The agreements we have reached reflect a commitment to patient care and supporting the clinical faculty to provide stability, collaboration, and to support the future of healthcare in Minnesota. The Strategic Partnership Agreement and the lease agreement for the Clinic and Surgery Center provide long-term certainty for the patient care provided there. By resolving these foundational issues, we can turn our full attention to serving patients, supporting healthcare professionals, and addressing the significant issues that face health care delivery in Minnesota.”

Dr. Greg Beilman, chief executive officer of M Physicians, said:

“Important work like this takes collaboration, relationships and continued prioritization of the people in our care — whether they are patients, clinicians, learners or community members — to do it well. I deeply appreciate the engagement of our partners in the Minnesota Attorney General's Office, the mediation team, Fairview and the University of Minnesota to complete this important work for Minnesota.”

Key features of new 10-year partnership

The mediated agreement the parties reached in January for a new 10-year partnership is built upon the existing 30-year partnership between the parties and is centered on a shared commitment for improved health for all Minnesotans through access to expert physician care at well-run and efficient Fairview healthcare facilities and sustained medical research and physician training at the University of Minnesota Medical School. Its key features include:

$1 billion commitment from Fairview to invest in its medical facilities at the University of Minnesota Medical Center over 10 years to help improve services to patients and the practice environment for physicians, learners, and other healthcare workers.
$50 million from Fairview in annual financial support for the Medical School, with the potential for additional funding based on system performance.
The reaffirmation of the University of Minnesota’s designation of M Physicians as the clinical practice for medical school faculty and affiliated physicians. M Physicians remains the sole faculty practice group, affirming faculty’s ability to continue their clinical and academic work in Fairview facilities while advancing the University’s commitment to delivery of care, medical education and training, and important medical research across Minnesota.
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.
New structures to strengthen the partnerships between the three organizations.

The new 10-year agreement takes effect on January 1, 2027.

History of strategic-facilitation and mediation process leading to agreements

With the 30-year agreement between the University of Minnesota and Fairview expiring at the end of 2026, Attorney General Ellison first convened the strategic-facilitation process among the parties in March 2025 and in April 2025, named Lois Quam as strategic facilitator. After Fairview and M Physicians reached a bilateral agreement in November 2025, Attorney General Ellison secured all parties’ agreement to continue negotiations with a mutually agreed-upon mediator, and in December 2025, announced the mediation team, consisting of retired Judge Thomas Fraser, Dr. William McGuire, and Ms. Quam. On January 26, 2026, the parties reached the 10-year mediation agreement, after more than seven weeks of mediation. The mediation agreement provided the framework for distinct, definitive bilateral agreements to cement the partnership that have now all been reached.

Authority of Attorney General to review healthcare transactions

The Minnesota Attorney General reviews healthcare transactions under Minn. Stat. § 145D.01, which authorizes the Attorney General to consider whether a healthcare transaction is in the public interest and seek court intervention if the Attorney General finds that it is not. The Attorney General also has authority over these matters as the primary regulator of Minnesota charities and to enforce the federal and state antitrust laws on behalf of the State of Minnesota and its residents. The Attorney General will have authority to review some aspects of the definitive agreements between the parties, once concluded.