Minneapolis-based Fairview Health Services is reportedly close to striking a partnership arrangement with the University of Minnesota and its affiliated physician group, according to the Twin Cities Pioneer Press.
Here are four things to know:
1. The governing boards of FHS, the Minneapolis-based University of Minnesota and the more than 900-member University of Minnesota Physicians group approved a nonbinding letter of intent to partner. If successful, the eight-year deal would replace the organizations' 2013 M Health partnership deal, which was widely regarded as a precursor to a potential merger between the university, the physician group and FHS, according to the report.
2. The organizations, operating under the moniker M Health Fairview, aim to boost research activity and improve the level of care provided to patients statewide. The deal, which includes a 10-year extension option in 2023, will also pare down more than 1,400 contracts into one, the report states.
3. As part of the agreement, FHS will increase its annual contribution to the University of Minnesota Medical School from $10 million this year to at least $40 million next year and $50 million by 2022. Additional payments to the medical school by the 12-hospital system may generate an additional $45 million per year.
4. The Twin Cities Pioneer Press reports leadership changes at FHS and the University of Minnesota Medical School played a large role in bringing the current deal to fruition.