More dismissals in U leadership as tensions rise over ‘secret’ Fairview deal

University of Minnesota administrators have fired more leaders of the doctors group that negotiated a new clinical partnership agreement with Fairview Health Services, escalating tensions with doctors who teach U medical students and treat patients at M Health Fairview hospitals and clinics.

The U removed William Sibert, chief financial officer for University of Minnesota Physicians (UMP), from his parallel role as Medical School CFO, according to Dr. Demetris Yannopoulos, a professor of medicine at the Medical School who is in touch with UMP leadership. The University of Minnesota Foundation also ended its contract with Lathrop GPM, the law firm employing UMP’s external counsel, Jennifer Bishop, he said.

These dismissals are in addition to the removal of Dr. Greg Beilman, interim CEO of UMP, from his role as interim vice president for clinical operations on Monday.

They also come in the wake of Minneapolis-based Fairview Health Services and the U doctors striking a 10-year deal — without involving top university leaders — to support physician training, academic health programs and the continuation of care for more than 1 million Minnesotans.

That decision soured their relationship, with the feud spilling into the public.

Sources familiar with the dismissals of Sibert, Beilman and Bishop’s law firm characterized the maneuver as retaliatory, reflecting growing dissonance between UMP leaders and the university’s central administration, including President Dr. Rebecca Cunningham, who appointed Beilman to his vice president role earlier this year.

A spokesperson for Cunningham declined to comment on Wednesday.

U officials initially blasted the deal as tantamount to a “hostile takeover.”

The disputed agreement would extend the longtime partnership under the M Health Fairview brand, directing about $100 million a year to support the university’s academic health programs. Half of that funding would be fixed, with the rest tied to performance goals for the joint health system.

Fairview and the doctors group say the deal is “binding” and ensures stability for patients and clinicians, but university officials argue it was negotiated in secret, without their participation, and could shift control and funding away from the Medical School.

Yannopoulos said the U’s approach to the negotiations placed “1,200 physicians, their families, providers and the stability of our health care operations in a precarious position.”

The conflict has far-reaching implications for Minnesota’s largest academic health system. If the partnership fractures, both sides warn that clinical programs, funding streams and medical education could be disrupted. It’s not clear what happens to the M Health Fairview brand on clinics and hospitals across the state.

A spokeswoman for the U said in an email that the governor has been kept apprised throughout the negotiation process and is “actively engaged.”

Walz spokesman Teddy Tschann confirmed the governor has been following the situation. “Gov. Walz is committed to ensuring that an agreement is reached that serves Minnesota while preserving the university’s mission,” Tschann said.

Brian Evans, a spokesman for Attorney General Keith Ellison, said, “To preserve the continuity of patient care, recruit and retain their physicians, and provide core Medical School funding needed to attract students and fund ongoing research, an agreement needed to be reached. Postponing an agreement into 2026 would put that all at risk.”

U Regent James Farnsworth said he’s committed to performing his responsibilities as a regent and assessing the administration’s approach to these negotiations.

“I’m concerned by the current turbulence surrounding the matter and am eager for all parties to return to the table to achieve an agreement,” he said.

“It would be better for everyone ... to be on the same page and get behind that deal,” Dean said.

The dismissals followed the Board of Regents’ special meeting last week, where it ruled that UMP leadership overstepped its authority in striking the Fairview deal, directing administrators to address conflicts created by those actions.

“When the Board of Regents realized there was such a conflict, shouldn’t they have asked some physicians to stand before them and give their perspective?” Yannopoulos said.