Minnesota AG steps in to break stalemate in health system merger talks

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The ongoing negotiations shaping the future of academic medicine in Minnesota are entering a pivotal phase, as Minnesota Attorney General Keith Ellison moves to play a more active role in talks between the University of Minnesota, Fairview Health Services and Essentia Health.

At the attorney general’s request, the three organizations have agreed to reengage in discussions facilitated by a strategic third party. The move comes after Minneapolis-based Fairview recently rejected a $1 billion proposal from the university and Duluth-based Essentia Health for the three entities to merge into an integrated academic system. 

“Given the current status of the talks, the time pressure, and the importance of the public interest in getting this right, my office is taking a more active role,” Mr. Ellison said in a March 21 news release. “I am working with the parties to identify a strategic facilitator to aid the parties in finding a resolution and to prioritize the public interest in the parties’ negotiations.”

The facilitator will manage logistics and set clear milestones, timelines and communication protocols. Its charge is to keep the public interest front and center — particularly the stability of patient care, the strength of the healthcare workforce, and the sustainability of academic research and education, according to the office of the attorney general. 

The cost of hiring the facilitator will be shared by the health systems and the university.

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