The university must acquire and operate major health care facilities before a Fairview/Sanford merger to prevent out-of-state control of Minnesota’s academic health system
Today, the University of Minnesota announced its preliminary request for support from the state of Minnesota for its health system (UMN Health). UMN Health will take bold steps to accelerate increased access, equity and quality in the University’s leading research and clinical care while protecting Minnesota’s public academic health assets.
“Before us is a once-in-a-lifetime opportunity to channel the University’s 170-year legacy of world-class discovery, service and impact to elevate the health of Minnesotans for generations to come,” said University President Joan Gabel. “But we can only do this through a strong partnership with the state. The positive return on this investment is clear.”
The preliminary legislative requirement is for the first phase of UMN Health’s next generation. The first phase aims to:
- Embrace Major Health Care Facilities – East and West Coast University Medical Center facilities, Masonic Children’s Hospital, and Clinics and Surgery Center. The investment includes the transfer of facilities as well as funding for workforce needs, union contracts and new leadership for a University-run organization. Estimated preliminary demand: $300 million.
- Execute main facilities. The investment includes a 90-day injection of operating capital — a common level for hospitals — to cover payroll, supplies, professional services, etc. The financing will also provide time to reverse operating losses and start generating positive financial results. Estimated preliminary demand: $650 million.
This request is subject to formal action by the Board of Regents, expected on March 10. Initial estimates are subject to change and depend on many factors, but they are presented to advance this important public health discussion about how best to address Minnesota’s current and future health care needs.
“We must forge a new path: one that focuses on the health care needs of Minnesotans now and for decades to come. One that recognizes the economic benefits of continuing our best-in-class healthcare sector, including educating and training future healthcare professionals. And who knows the treatments and cures, U of M researchers will find out,” said Myron Frans, senior vice president for finance and operations.
University officials said they oppose the proposed merger between Fairview Health Services and Sanford Health, as the merger is currently proposed with a target date of May 31, 2023.
“The control of Minnesota’s academic health care assets by a South Dakota-based entity is a non-starter,” said Dr. Jakub Tolar, dean of the Medical School and vice president for clinical affairs. “The charitable assets of the University’s academic health facilities and operations are supported by Minnesotans and should be governed by the University of Minnesota.”
The University’s comprehensive mission of education, research and public service provides significant benefits to Minnesotans. The Medical School is the eighth public medical school in the nation for NIH research funding. The university is one of the few nationwide with colleges and programs that span all disciplines of the health sciences, including human and animal health. The institution also currently partners with more than 3,000 clinical training sites to serve the health care needs of Minnesotans in every corner of the state.
“In all of our health science professions and especially when we collaborate, we learn from our students, we apply our innovation, and we change care and care delivery in response to science,” Tolar said. “That’s how we progress. This is how we do the best for our patients.”
The University remains committed to collaborating with all health care providers in Minnesota. Currently, the University partners with Fairview under the M Health Fairview system that is scheduled to operate through 2026. University leaders call on state legislators to support new investments that focus the needs of Minnesotans and ensure the continued strength of key public assets.
Additional information about the University’s proposed phase one application is posted online. For more information on UMN Health, visit best caremn.umn.edu.
About the University of Minnesota
The University of Minnesota system, with campuses in Crookston, Duluth, Morris, Rochester and the Twin Cities, is guided by a distinct vision of excellence. We are proud of our land-grant mission for world-class education, innovative research and community involvement, and we are united in our effort to serve Minnesota. Visit system.umn.edu.
About University of Minnesota Health Sciences
At the University of Minnesota, we’re treating patients, educating the health professionals of tomorrow, and making discoveries that improve health care in Minnesota and around the world. The university is among the top 10 public research universities in the United States, and our academic health care system treats more than one million patients each year. With thousands of health science students across the U of M system, U of M trains approximately 70% of Minnesota’s health professionals through our nationally recognized interprofessional education curriculum and thousands of clinical training partnerships across Minnesota—many in rural communities or underserved. Learn more at health.umn.edu.
