MINNEAPOLIS — A deal for the University of Minnesota to buy back its academic health facilities from Fairview Health Services will take a little longer to complete than originally planned.
Earlier this year, the university's Board of Regents approved a non-binding letter of intent with Fairview to repurchase the University of Minnesota Medical Center and transfer control back to the U of M.
However, in a joint statement sent to KARE 11, university officials and Fairview said they will not meet their self-imposed Sept. 30 deadline to finalize a deal.
"Since we reached agreement on our letter of intent last February, we have committed significant time and attention to working through the complexities involved in determining how a future partnership can best serve the health care needs of our state," said U of M officials and Fairview Health Services in their joint statement. "This process has included partnering with leading financial and health care industry experts for comprehensive third-party analyses. That ongoing work is designed to provide us a clearer understanding of current operations and facilities, and what’s needed to ensure we can continue to provide world-class care that’s accessible and affordable to all Minnesotans, as well as a great working environment for our dedicated staff."
Fairview has operated the university's hospital since 1997, following financial struggles for the facility.
Officials say the delay in the deal is expected to be brief.
"While significant work has been done over the past eight months, we both agree additional time is needed. As we have made clear from the outset, getting these agreements right is our top priority. With that in mind, we hope within a month to wrap up the current stage of discussions," the statement said.
In addition to the hospital sale, the two sides are negotiating the future of the "M Health Fairview" brand, after Fairview said it would not renew its current deal when it expires at the end of 2026.
Officials say patients should not notice any impact on care as talks continue.
"As has been true throughout these discussions, nothing changes for our patients, our care teams, or our employees at any of our facilities as we continue these discussions," the statement said. "We remain focused on providing the high-quality, innovative care Minnesotans expect and deserve, and on strengthening our joint clinical enterprise."
