The University of Minnesota, Fairview Health Services, and University of Minnesota Physicians (M Physicians) have reached a 10-year mediation agreement designed to support patient care, medical education, and research in the state. The agreement builds on a 30-year partnership between the organizations.
Minnesota Attorney General Keith Ellison initiated a strategic facilitation process in March 2025 as the previous long-term agreement approached its expiration at the end of 2026. In April 2025, Lois Quam was appointed as strategic facilitator. After Fairview and M Physicians reached a bilateral agreement in November 2025, all parties agreed to return to negotiations with a mutually selected mediator. Retired judge Thomas Fraser led the mediation team, with Lois Quam and Dr. William McGuire serving as co-equal consultants. The team met daily for more than seven weeks starting December 5, except for December 25.
The partnership among these institutions provides care for approximately 1.2 million people annually and is responsible for training about 70 percent of physicians in Minnesota. It also plays a key role in scientific innovation and economic growth within the state.
The new agreement outlines three definitive agreements: an academic affiliation between the University of Minnesota and Fairview; a master agreement between M Physicians and the University; and an amendment to last November’s stability agreement between Fairview and M Physicians. These agreements will be finalized with continued involvement from the current mediation team.
Signatories include University of Minnesota President Rebecca Cunningham, M.D., Fairview President and CEO James Hereford, and M Physicians interim CEO Greg Beilman, M.D. The boards governing each institution are expected to act on the binding agreement by February 1, 2026. Implementation will begin in some areas during 2026, with full effect from January 1, 2027.
Attorney General Ellison stated: “I’m gratified that after much hard work, the University of Minnesota, Fairview Health System, and M Physicians have reached an agreement that will ensure that 1.2 million Minnesotans a year will continue to receive world-class patient care in our state, that Minnesota will remain a place where world-class physicians, specialists, and researchers seek to treat patients and build successful careers, and that secure, stable funding for the University of Minnesota Medical Center that trains 70 percent of Minnesota doctors will continue for the next generation.
I heartily congratulate all the parties and their leadership teams for doing the hard work of reaching this agreement. I commend them all for choosing to stick with this process through thick and thin, for recognizing that despite differences they had, they shared the overriding goal of strengthening the health and prosperity of our entire state and its flagship university. I particularly appreciate and wish to thank leadership from the Board of Regents and the M Physicians board in early discussions about mediation, the Fairview board and leadership for their consistent focus on getting to an agreement, and the efforts of our mediator Judge Thomas Fraser and strategic facilitators Dr. William McGuire and Lois Quam. Ms. Quam deserves special recognition for seeing this process through from beginning to end. I know all Minnesotans join me in thanking everyone that contributed to getting us to this point: it is a significant and positive development for all of us and the state we love.”
Rebecca Cunningham commented: “This agreement is an important milestone that brings clarity to the relationship between the University, M Physicians, and Fairview Health Services for the next 10 years. We are pleased to be able to continue this long-term partnership, which has played a vital role in caring for Minnesotans, training much of the state’s healthcare workforce and advancing lifesaving medical research. It represents meaningful progress toward our goal of building a world-class healthcare solution that serves all of Minnesota. We are grateful to the Attorney General, the mediator, and the facilitators for their leadership in this mediation process.”
James Hereford said: “Positioning our care-delivery system to deliver excellent care for our patients and providing an environment in which our physicians, and our employees can deliver that care has always been our top priority, and this agreement supports that. Healthcare delivery in Minnesota and across the country is in crisis… This mediation process created space…for continuity of care…a strong academic partnership…and sustainable future…We are deeply grateful…to Attorney General Ellison…the mediation team…and Dr. Greg Beilman…Together we now have a durable path forward that strengthens patient care…”
Dr. Greg Beilman added: “This agreement establishes a clear foundation …for M Physicians …to deliver world-class care …for our patients …learners …and community….We are prepared to work closely with our University …and Fairview partners …to deliver on these commitments….We are grateful …to Judge Tom Fraser …Dr Bill McGuire …Lois Quam….We also thank Attorney General Keith Ellison…”
Under Minn. Stat §145D.01 [https://www.revisor.mn.gov/statutes/cite/145D], healthcare transactions like this fall under review by Minnesota’s Attorney General who can consider whether such deals serve public interest or require court intervention if not found so.
The Office also regulates charities statewide [https://www.ag.state.mn.us/Office/Charities.asp] and enforces federal/state antitrust laws affecting residents.
