In a letter to employees, James Hereford, Fairview Health’s president and CEO, and John Heinmiller, chair of Fairview’s board of directors, said that while Fairview is “open to a partnership,” the organization does not see “the demonstrable improvements” for its employees and patients in the model that has been articulated outside of which could be reached through a strategic partnership.
“When it comes to a proposed merger between Fairview, the University and Essentia — our answer is no,” the letter said.
The merger would have invested $1 billion over five years and combined strengths from both organizations to address challenges like workforce shortages, declining reimbursements and rising costs. It also would have also secured financial support for Minneapolis-based University of Minnesota Medical School.
The University of Minnesota’s existing agreement with Fairview Health ends in 2026. Rebecca Cunningham, MD, president of the University of Minnesota, said in a Jan. 24 news release that the university is at “an inflection point” with its Fairview Health relationship, which “requires urgent and innovative solution.”
“We envision this model as a new path forward in our relationship, one that builds on the momentum all those at Health Fairview have built and that continues to put patients first, consistent with our organizations’ shared priorities,” Dr. Cunningham said.
The letter stressed that the University of Minnesota Medical School would not be abandoned during the merger discussions, and while Essentia has shared a willingness to support it, the existing financial support for the medical school is not sustainable.
“While we continue to seek resolution on sale of the academic assets, we know there are concerns about what would happen at the beginning of 2027 if the current contract has ended and a new contract is not in place,” the letter said. “Let us be clear: access for academic physicians and the patients we serve at UMMC — and all Fairview facilities — would continue.”
Should the contract end, the letter said that Fairview would maintain ownership and operation of the academic hospitals, with academic physicians continuing to practice. Fairview would also continue to pay market rates for provider services, provide academic faculty with practice opportunities at its community hospitals, continue clinical trials and research, maintain current training and education, and provide academic support “at an amount commensurate with a future partnership.”
“We remain hopeful there is opportunity to build a bold, shared solution that best meets the needs of patients and Minnesota — both now and in the future,” a spokesperson for the University of Minnesota said in a Feb. 12 statement shared with Becker’s.
A spokesperson for Essentia Health also said in a Feb. 12 statement shared with Becker’s that the reason the system is discussing the partnership with the University of Minnesota is to ensure its goal of providing patients with access to high-quality and affordable care.
“We will continue outlining our shared vision to support the next generation of Minnesota caregivers and keep care close to home for the patients and communities we’re honored to serve,” the Essentia Health spokesperson said.
