Fairview officials said the deal allegedly fell through because the university sought too much control over the enterprise, according to the report.
The collapse has left the university searching for a new partner.
The university and Fairview worked together for 20 years, ever since the university sold its hospitals and clinics to Fairview. The university sold the facilities to stem financial losses affecting its position as a leading research institution, according to the report.
According to the potential agreement, all seven hospitals and 42 clinics in the Fairview name would have been rebranded as University of Minnesota Health, or “M Health” for short. Although M Health would maintain its own CEO and board members, the facilities would still be subjected to university oversight. According to Fairview officials, at least 27 provisions would have curtailed the CEO’s decision making power.
After examining the agreement, the Fairview interim chief told the Star Tribune that the board would not accept the terms.
Officials from both facilities said they will continue to work together under several affiliation agreements, according to the report.
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