The University of Minnesota Board of Regents on Thursday criticized the deal reached between its physicians group and Fairview Health Services to fund its medical school, saying the physicians group acted “unlawfully” in the matter.

In a strongly-worded resolution passed at their board meeting, the regents said University of Minnesota Physicians, also referred to as M Physicians, overstepped its authority in reaching the agreement.

The resolution calls for the physicians to negotiate with the university on the matter. It further states that “the University is now obligated to take actions that will sustain the eminence of the Medical School and to enable the University to meet the health needs of all Minnesotans.”

It also states that the university may take action over any reductions in expected funding from the agreement as well as moving “to protect the University’s name and marks,” such as branding and trademarks, and evaluating “the conflicting loyalties and fiduciary duties created by the actions of UMPhysicians’ management…” and whether to continue M Physicians’ designation as the faculty practice after 2026.

U officials critical of agreement

On Wednesday Fairview and Attorney General Keith Ellison announced the 10-year agreement to fund for the university’s medical school. It includes a $1 billion capital commitment from Fairview. While university administrators claimed to have been left out of the deal, though both Fairview and Ellison’s office said U officials were aware of talks between the two groups.

M Physicians is a group practice for the faculty of the university’s medical school, including more than 1,200 doctors.

Ellison, who had pushed the U and Fairview to reach an agreement, praised the deal on Wednesday, saying it would “ensure continuity of care and academic partnership.”

University officials on Thursday said the agreement may include eliminating positions for U representatives on the Fairview board and diminish or eliminate the role of the dean of the medical school in the clinical enterprise.

“…This proposed agreement is not a path forward to ensure that Minnesota has a strong medical school for decades to come,” said University President Rebecca Cunningham. Cunningham also noted university officials have transparency concerns over the matter and that they are still learning details of the agreement.

Physicians group ‘eager to address misunderstandings’

In a statement Thursday M Physicians officials said that faculty physicians attended Thursday’s meeting and heard strong support for their missions.

“This is encouraging as it is this tripartite mission that has guided our negotiation of a continuing non-exclusive relationship with Fairview. As faculty members of the University of Minnesota Medical School, led by faculty members of the University of Minnesota Medical School, we look forward to the University’s participation at the table with us and Fairview,” the statement said.

The physicians group further said they “are eager to address any misunderstandings.”

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The agreement came as a previous deal between the U and Fairview is set to expire in 2026. Fairview owns health care facilities on the university’s Twin Cities campus, including the teaching hospital for the medical school.

Talks to extend the partnership between the university and Fairview have been going on since February 2024, with the two trying to reach agreement on a new health care model. The U medical center, which educates some 70% of the doctors and nurses in Minnesota, was sold to Fairview in 1997.

In September, Duluth-based Essentia Health exited talks with the U and Fairview to form a nonprofit “All-Minnesota Health Systems Solution” alliance. And, before that, Fairview failed to persuade university officials to back a proposed merger with Sanford Health, based out of state in Sioux Falls, S.D., and the largest rural health care system in the country.