Toledo, Ohio-based ProMedica has agreed to pay $7.6 million, two months' worth of overdue payments, to the University of Toledo after the state raised the possibility of a lawsuit, according to Ohio Attorney General Dave Yost's website.
Mr. Yost announced earlier this month that if the health system did not pay the university by Sept. 28, the state would sue.
ProMedica initially refused to pay the amount as it sought a new or revised agreement with the university.
"Both parties are returning to the negotiating table in good faith, and I look forward to seeing this partnership flourish for the good of the region," Mr. Yost said.
The partnership began in 2015 to provide staffing at ProMedica's Toledo Hospital and Toledo Children's Hospital in exchange for medical education for the university's medical students.