Minnesota AG Ellison backs new deal between Fairview, U physicians

Without the agreement, the university’s academic health program might suffer through a ‘highly dangerous unwind,’ Keith Ellison says.

The Minnesota Star Tribune
November 12, 2025 at 4:43PM
Minnesota Attorney General Keith Ellison in his office at the Minnesota Capitol in St. Paul on Wednesday, April 9. Ellison said Wednesday he welcomed an agreement an agreement between Fairview and doctors at the University of Minnesota on the future of the U Medical School. (Elizabeth Flores/The Minnesota Star Tribune)

Minnesota Attorney General Keith Ellison says a deal announced Wednesday by Fairview and doctors at the University of Minnesota is critical for preventing a damaging “unwind” of agreements that will expire next year for funding the U’s academic health program.

Recruiting and retaining doctors at the university, as well as the U’s research and teaching mission, were all threatened by instability if the three parties embarked on the lengthy process of disentangling their operations, Ellison says.

The U signaled strong opposition to the plan Wednesday.

Ellison, who has been involved in the matter this year because his office reviews health care transactions and is the primary regulator of nonprofits in the state, called on the university to join negotiations for remaining issues such as provisions for graduate medical education and joint branding of hospitals and clinics.

Fairview and the university currently market clinic and hospital services under the brand M Health Fairview.

“The possibility of an unwind of the agreements that would have been devastating for all three parties, their staff and patients, and the provision of medicine in Minnesota at large, was real and growing,” Ellison said in a statement.

He added: “With today’s agreement, an unwind is now a far more distant possibility than it was before.”

The attorney general’s strategic facilitator Lois Quam has been working since the spring on strategies to bring the parties together for a new agreement, including a now-abandoned proposal for Fairview to merge with Duluth-based Essentia Health.

Quam told the U’s Board of Regents in May that the future of health care training, research and patient care at the university was too important to get lost in long-standing disagreements between Fairview and the U.

“I recognize that there has been turbulent water under this bridge,” Quam said at the time. “We can’t undo that. But there is too much at stake to dwell on past disputes. ... Agreements can and will be reached. There is far more that unites than divides.”

On Wednesday, a statement from Ellison’s office emphasized that the university will be at the negotiating table as the parties work to sort out unanswered questions in the new deal:

“The agreement represents an important step toward a reimagined and revitalized partnership between Fairview, [University of Minnesota Physicians], and the University, who continues to be essential to and a central player in this process. Fairview and the University will now embark on an agreement to address the remaining items before them.”

about the writer

about the writer

Christopher Snowbeck

Reporter

Christopher Snowbeck covers health insurers, including Minnetonka-based UnitedHealth Group, and the business of running hospitals and clinics.

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