Fairview recommends investments in UMN healthcare research and education

At Tuesday’s task force meeting, Fairview discussed recommendations for healthcare at the University and the company’s decision to not renew their contract.

by Olivia Hines
Published November 21, 2023

Fairview gave recommendations to the state’s Task Force on Academic Health on Tuesday and said they need to invest in research and education at the University of Minnesota.

These recommendations come after Fairview announced Monday they will not renew their contract with the University six weeks before the Dec. 31 deadline.

James Hereford, the president and CEO of Fairview, said Fairview has a network of more than 5,000 providers, including faculty from the University.

“I believe deeply in the importance of the University of Minnesota to Minnesotans,” Hereford said. “To their health, to the vitality of our economics — it is central that it is successful.”

Former Minnesota Gov. Mark Dayton, a special advisor on the task force, said Hereford’s presentation glossed over the reality of Fairview’s relationship with the state, citing the failed Sanford-Fairview merger opposed by the University.

Additionally, Fairview announced on Nov. 3 they planned to cut 250 jobs by the end of the year, according to MPR.

“You dragged the state and the medical school,” Dayton said. “From all descriptions I’ve read, that relationship [between Fairview and the University] is in tatters.”

The agreement between Fairview and the University lasts until 2026. The contract has an automatic renewal and without notification, the agreement would be renewed for another decade, Hereford said.

The M Fairview Health contract was crafted in 1997 and needed to be updated, according to Hereford.

“We felt strongly that we did not want to have that agreement,” Hereford said. “What it does not indicate is that we do not want a relationship with the University.”

The University and Fairview will work together to draft a new contract before the current one expires in three years.

Hereford added the decision does not change the health care provided by Fairview.

Fairview’s decisions were made without concern for the future of the University Medical School or health care in Minnesota, Dayton said.

“In fact, it seems you are making your decisions in your own best interests,” Dayton said.

At a special meeting for the committee on academic health on Tuesday, the Board of Regents reviewed the state of the health sciences at the University.

Regent Penny Wheeler said the board will discuss the M Fairview Health decision not to renew the contract at the next meeting Dec. 7-8.

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