MINNEAPOLIS — The University of Minnesota announced Thursday its plans for a new hospital on the east bank of the Twin Cities campus.
It would include buying back its health care facilities from Fairview Health Services, which may merge with Sanford Health this year.
The University says its new hospital would be part of a future medical center that encompasses several blocks. U of M President Joan Gabel says it's necessary, calling the school's other hospitals "old".
"It advances care, wellness and health in ways that only a hospital associated with a leading research university can provide," said President Gabel.
Gabel says the University has worked to acquire the land for years, and now it wants to own those other facilities, including the University of Minnesota Medical Center — a teaching hospital that was struggling financially until Fairview bought it some 25 years ago.
Fairview and Sioux Falls-based Sanford Health have been considering the merger for several months, but it's a move some people are criticizing.
Leaders from those health systems attended a community meeting hosted by the Minnesota Attorney General's Office on Jan. 10. Nurses, union leaders and lawmakers expressed their concerns for several reasons. There was similar backlash when the two proposed to merge in 2013.
Even the University raised questions on Tuesday, but the school's head of finance and operations has seemingly moved on with Thursday's announcement.
"We have no control over that, we're moving forward with our vision, yes," said Senior Vice President for Finance and Operations Myron Frans.
Without Fairview, the Medical Center could lose up to $80 million worth of support every year, the University saying it's not a handout. Although, it did admit it needs public support to buy back those buildings, as well as construct the new hospital, that would cost at least a billion dollars.
Despite all the unknowns, the University says it's just as committed to quality care.
"How do we get the best care to the people of Minnesota, what system is the best," said Frans. "We're working on that and that's good."
The Attorney General’s Office will host three more community meetings.
BEMIDJI
- DATE: Tuesday, January 17
- TIME: 6:00 PM - 8:00 PM
- WHERE: Bemidji State University, Hobson Memorial Union Ballroom, 1500 Birchmont Dr. NE, Bemidji, MN 5660
- Speaker Sign-up Form
WORTHINGTON
- DATE: Wednesday, January 25
- TIME: 6:00 PM - 8:00 PM
- WHERE: Worthington High School cafeteria, 1211 Clary St., Worthington, MN 56187
- Speaker Sign-up Form
GRAND RAPIDS
- DATE: Tuesday, January 31
- TIME: 6:00 PM - 8:00 PM
- WHERE: Ives Studio at the Reif Performing Arts Center, 720 NW Conifer Dr., Grand Rapids, MN 55744
- Speaker Sign-up Form
The Office will use the information the public submits to evaluate the transaction under existing laws, as well as to determine opportunities for changes or improvement to public policy, regulation, or state or federal law.
At the first meeting, a Fairview spokesperson said they are still interested in a clinical partnership with the University and the combined Fairview/Sanford system.
Here's the full statement from Fairview:
In 1996, the University of Minnesota sought partners to purchase the University of Minnesota East Bank Medical Center Campus. At the time, directly across the river from the East Bank facility was Fairview-Riverside and St. Mary’s Campus, two hospitals owned by Fairview. Under Fairview ownership, both St. Mary’s and Fairview-Riverside were consolidated by Fairview with the University East Bank hospital, resulting in what is now called the University of Minnesota Medical Center East Bank, University of Minnesota Medical Center West Bank, and Masonic Children’s Hospital (which encompassed the former St. Mary’s and Fairview-Riverside buildings). Since 1997, Fairview has invested significantly in capital improvements in both East Bank, West Bank and at Masonic Children’s Hospital.
As we stated at this week’s community meeting with Attorney General Ellison, we remain interested in a clinical partnership between the University and the combined Fairview/Sanford system. Since August, we have engaged in good faith with the University of Minnesota and brought forward many options for partnership. Despite repeated requests since August of last year, we have had no opportunity to meet with President Gabel or Regent Powell.
In the interest of partnership, we put many options on the table, including the University repurchasing the East Bank academic medical center from the combined system.
We look forward to working together with the University to better understand the details of their vision and determining fair market value for the assets they may seek. We also hope to learn more about their financial and operating plans in addition to the care partnerships necessary to support the University’s teaching and academic missions. Our ultimate priority is supporting our staff and ensuring continuity of care for the patients we serve.
We look forward to completing this merger and working with the University post-close. We are ready and willing to meet with President Gabel, Regent Powell, and other University leaders who are interested in working together to advance care for Minnesotans. We remain excited about what a combined Fairview/Sanford health system will bring to the Minnesotans we are proud to serve.
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