University of Minnesota board unanimously approves mediated settlement with Fairview and physician group

The University of Minnesota Board of Regents on Jan. 30 approved a mediated settlement among the university, University of Minnesota Physicians and Fairview Health Services that leaders said will clarify operational roles and provide stability for medical education and clinical care.

President Rebecca Cunningham told the board the preliminary agreement "brings clarity and relationship with our physician group in Fairview for the next 10 years," and that it affirms the medical school’s role in education, research and clinical care while enabling facilities investments and a secure physician practice plan. "This agreement is a strategic pivot," she said, describing a structure in which Fairview will manage hospital operations and the university will retain responsibility for academic and research missions.

Chair Huebsch described the vote as a milestone and thanked mediators and negotiating teams for their work. The board moved and seconded the settlement and approved it by roll call, with the record showing 12 yes and 0 no.

Regents who spoke during the discussion praised the negotiating team’s leadership and said the settlement supports the university’s land‑grant mission to serve all of Minnesota. Regents asked practical questions about campus safety and communications now that hospital operations will be managed by Fairview; President Cunningham responded that hospital security will remain Fairview’s responsibility, UMPD will continue to cover campus, and that university leaders and deans will coordinate localized messaging while the university provides overarching support.

Cunningham also thanked Attorney General Keith Ellison, mediator Judge Thomas Fraser and facilitators Lois Quam and Dr. Bill McGuire for their roles in the mediation. The settlement, she said, will lead to “definitive agreements” to be presented to the board in future meetings, including a master agreement with the physician group, academic affiliation agreements, and leases for clinics and the surgery center.

What happens next: The mediated settlement was approved on a 12–0 roll‑call vote. The board will consider the follow‑on definitive agreements when they are ready for formal review and action.

Quotes in this article are drawn from the board meeting transcript and attributed to board members and university officials as recorded.