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Mediated 10-year deal keeps University of Minnesota faculty practice intact; Fairview pledges $1 billion in capital and $50 million a year to the medical school

Higher Education Committee · February 25, 2026
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Summary

A mediated agreement announced Jan. 23 between the University of Minnesota, Fairview Health Services and University of Minnesota Physicians pledges $1 billion in capital, $50 million per year in academic support and programs for Greater Minnesota while preserving UMP as the medical school's faculty practice plan; definitive contracts are being drafted with a March 31 target.

MINNEAPOLIS — Leaders of the University of Minnesota, Fairview Health Services and the University of Minnesota Physicians told the state Higher Education Committee on Jan. 26 that a mediated, 10-year agreement signed Jan. 23 is intended to stabilize the medical school, preserve clinical training statewide and sustain patient access.

Lois Quam, the strategic facilitator appointed by the Attorney General's office, told the committee the mediation team signed a 10-year agreement on Jan. 23 and that the deal will be the basis for definitive contracts the parties expect to complete by March 31 or a later mutually agreed date. "As the Attorney General said when the mediation agreement was announced, ‘will ensure that 1,200,000 Minnesotans a year will continue to receive world class patient care in our state,'" Quam said.

Why it matters: The deal aims to protect the University of Minnesota Medical School’s education, research and clinical missions, which university officials say help train roughly 70 percent of Minnesota’s doctors. University leaders and UMP officials warned that without a mediated settlement customers, faculty jobs and clinical services were at risk.

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