U of M, Fairview and M Physicians reach deal
The University of Minnesota, Fairview Health Services and M Physicians have finalized a 10-year deal to fund the U’s medical school and support physician training and research, following a tumultuous negotiation process.
This agreement formalizes the mediated resolution reached by the three parties in January and will take effect on Jan. 1, 2027.
Minnesota Attorney General Keith Ellison announced Tuesday that, under the terms of the agreement, M Physicians will serve as the sole faculty practice group at the U’s medical school. Additionally, Fairview and the U have agreed to allow medical school faculty, students, residents, and fellows to conduct research and teach at Fairview healthcare facilities.
Other key elements of the agreement include a $1 billion investment from Fairview in its medical facilities on the University of Minnesota campus, along with $50 million in annual funding for the medical school. As part of the deal, the parties will explore a new program to support physicians practicing in greater Minnesota.
The U’s Board of Regents, along with the boards of directors for Fairview and M Physicians, will meet Friday to vote on the agreement. If approved, the strategic facilitation and mediation process between the three parties, which was initiated by Ellison’s office in the spring of 2025, will conclude.
Ellison released a statement noting that the three organizations, which have partnered for 30 years, recognized that failing to reach an agreement would lead to significant repercussions for patients, physicians, researchers, medical education and Minnesota’s economy.
Dr. Rebecca Cunningham, the U’s president, and Dr. Greg Beilman, CEO of M Physicians, expressed their appreciation in a statement for the Attorney General’s office and the mediation team for achieving a successful outcome.
“By resolving these foundational issues, we can turn our full attention to serving patients, supporting healthcare professionals, and addressing the significant issues that face health care delivery in Minnesota,” Fairview’s CEO James Hereford said in a statement.
Fairview runs the Clinical and Surgery Center on the U’s campus. Fairview and the U, which owns the building, have agreed on a lease and will soon finalize the terms through binding arbitration. In November 2025, Fairview and M Physicians updated their agreement with some changes made by both parties.
Together, the U, Fairview and M Physicians provide care for 1.2 million people each year and train 70 percent of Minnesota’s physicians.
