With the University of Minnesota's academic medical program wanting more financial support from Fairview Health Services, the U's Board of Regents voted Friday to extend negotiations over an existing affiliation agreement.
For 20 years, Minneapolis-based Fairview has owned and operated the U's teaching hospital, according to an affiliation agreement that was last renegotiated in 2013.
During a Friday meeting in Minneapolis, the regents voted to give notice of termination to the existing agreement, but described the step as a "procedural" move that allows talks to continue through Sept. 30.
Under the current agreement and related contracts, Fairview is providing the U with at least $90 million in support over 10 years. In a statement Friday, university officials said that "increasing those numbers closer to the level of our peers is a key item in renegotiating this agreement."
Dr. Brooks Jackson, dean of the U's medical school, said he couldn't name a particular sum of extra money the U is now seeking, but said the university needs more for teaching, training, research and facilities.
"Our recent discussions with Fairview leadership have been very positive and productive," Jackson and a colleague said in a statement distributed on campus Friday. "We are confident we have a shared vision for our future."
Fairview is one of the state's largest operators of hospitals and clinics. Last year, Fairview and the U's practice plan for physicians called off plans for a formal merger.
In the wake of the decision, university officials said they might seek a primary partner other than Fairview in operating the U's network of hospitals and clinics. Jackson, however, said Friday that the U is now focused on maintaining and improving the relationship with Fairview as its primary partner.
Fairview issued a statement saying: "Both Fairview and the University agree that we must work hard to make improvements in our academic health care system [including] expanded growth that supports the goals and mission of the organizations."
During the meeting, Regent Patricia Simmons noted the existing relationship between the U and Fairview is both deep and complex. They are linked, she said, by no fewer than 1,000 contracts.
The tone of the resolution is meant to signal that the U "really [wants] to work with this partner and be successful," Simmons said.
Other board members, however, said the university needs to let Fairview know that the U might still walk away from the partnership without improvements to the affiliation agreement.
"Change has been proven to be pretty difficult with our partners," said Regent Richard Beeson. "We need to see substantive change by the end of September."
Christopher Snowbeck • 612-673-4744
Twitter: @chrissnowbeck
