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University of Minnesota, UM Physicians and Fairview Health Services agree to new integrated structure to enhance patient care, education and research

University’s Board of Regents also approves U’s agreement with Minnesota Vikings

May 10, 2013

The University of Minnesota Board of Regents has provided the final approval needed for an agreement to enhance the working relationship among the University of Minnesota, Fairview Health Services and University of Minnesota Physicians (UMP) on the University of Minnesota Medical Center, Fairview campus and in service lines managed by UMP.

The integrated structure agreement outlines a new shared governance structure, and a single strategic plan and alignment to form a single management team co-lead by the president of the University of Minnesota Medical Center, Fairview and the chief executive officer of UMP. The structure will integrate certain operations of Fairview and UMP without merging them. Financial performance will be tracked by the creation of "virtual" financial tools.

"The integrated structure agreement represents a new level of commitment and clarity around how we will work together differently to improve patient care, enhance the Academic Health Center’s education mission and support health care research for the benefit of all Minnesotans," said Dr. Bobbi Daniels, CEO of UMP.

Specifically, the agreement will:

  • Create a more seamless experience for patients across the continuum of care that will result in more efficient operations, lower costs and a better patient experience. It will allow the organizations to deliver the right care at the right place at the right time.
  • Improve the education provided by and enhance the national standing of the Medical School and other health professional schools at the U. It will also provide more on-site training and interprofessional education opportunities for students.
  • Increase focus on research and clinical trials, while improving patient care.

"This represents the next chapter of our organizations’ relationship, which began in 1997," said Carolyn Wilson, University of Minnesota Medical Center, Fairview president. "As the health care environment continues to change, so must we continue to evolve to better serve patients and improve Minnesota’s health."

Wilson and Daniels will co-lead the organizations’ integrated management team. A new 12-member board of directors will also be established to provide oversight. The board will be chaired by the dean of the Medical School.

"Minnesota’s health care future is linked to the University of Minnesota, which is the state’s largest and most important institution for health care education," said University President Eric Kaler. "All three parties to this agreement are renewing their commitment to create a top-tier academic health system that will serve the needs of tomorrow’s health care professionals while advancing science and medical breakthroughs."

The integrated structure will provide additional academic support payments to the Medical School annually for the next 10 years. Annual amounts, made from earnings of the clinical enterprise, are $7 million in the first two years of the agreement, $8 million in the next two years and $10 million for six additional years.

"This agreement brings us closer to realizing the vision of those who helped to create the affiliation between Fairview and the University in the late 1990s," said Aaron Friedman, M.D., dean of the Medical School and the university’s vice president of health sciences. "The integrated structure will help us fulfill the vital role the University plays in training health care professionals and conducting groundbreaking research."

The integrated structure was previously approved by the UMP Board of Directors on April 17, 2013 and the Fairview Board of Directors on April 18. The initial agreement is for five years and will renew automatically for another five years unless one party seeks to end it.

The agreement includes operations at University of Minnesota Medical Center, Fairview, University of Minnesota Amplatz Children’s Hospital, UMP outpatient clinics on the East and West Banks, University of Minnesota Physicians Heart at Fairview, University of Minnesota Physicians Cancer Care at Fairview and UMP services at other Fairview sites, including Maple Grove. The agreement will also facilitate the development of a new Ambulatory Care Center on the U’s Minneapolis campus, which is expected to open in 2016.

"This agreement reflects a strong commitment to Minnesota’s patients and students," said Board of Regents Chair Linda Cohen. "It establishes a framework to enable and support the long term success of the University’s Academic Health Center."

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University to benefit from Vikings play at TCF Bank Stadium

Regents reviewed and approved a Facility Use Agreement between the University and the Minnesota Vikings, which will allow the Vikings’ use of TCF Bank Stadium beginning in 2014, while the Vikings’ new stadium is under construction in Minneapolis.

Under the agreement, the Vikings will pay a fixed fee of $250,000 per game for 2014 and 2015, with increases for any additional years. The U will receive an additional $50,000 per game from concessions, advertising and sponsorship revenue. The Vikings also will pay for improvements to TCF Bank Stadium, including a field heating system and any temporary bleachers. A reserved parking fee is still being negotiated.

The agreement also creates a Minnesota Vikings Good Neighbor Partnership Fund for community projects during the years the Vikings play at TCF Bank Stadium. The Vikings will contribute $125,000 per NFL season in cash and in-kind contributions to the Partnership fund.

Regents also approved a related resolution authorizing the sales of alcohol on Vikings’ game days. Specifically, sales may include beer and wine throughout TCF Bank Stadium, hard liquor in premium seating areas only, and beer, wine and hard liquor in the club rooms of Mariucci and Williams arenas if they are used by the Vikings.

More information is available at the University’s News site.

Other Board of Regents activity included:

  • Swearing in: Newly elected regents were sworn into service by Minnesota Chief Justice Lorie Skjerven Gildea. They included current Board Chair Linda Cohen and current Regent Dean Johnson, as well as new Regents Peggy Lucas and Abdul Omari, who were elected by legislators for a first term to the board.
  • Donohue appointed general counsel: The board approved the appointment of William Donohue as the University’s next general counsel, effective May 22, 2013 and continuing up to June 30, 2015. Donohue has served in the Office of the General Counsel since 1982 and has been the deputy general counsel since 1996.
  • Undergraduate student income distribution: Vice Provost and Dean of Undergraduate Education Robert McMaster provided new analysis that shows the family income level distribution of the undergraduate student body has shifted little from 2001-2011. The recent analysis includes all students – not only those receiving financial aid – and adjusts incomes for inflation. The largest percentage gains occurred in both the bottom ($0 to $30,000) and top income categories ($110,000 and above), with 6 and 7 percent gains, respectively. Student representatives to the board raised questions about the topic in December 2012.
  • Academic program review: McMaster and Vice Provost and Dean of Graduate Education Henning Schroeder outlined plans to review the U’s academic programs to ensure accountability, continuous program improvement and program alignment with the university’s priorities and values. The office of Provost Karen Hanson will take a more holistic review going forward that will include analysis of undergraduate along with graduate and professional programs, faculty productivity and resources, such as program budgets and facilities.
  • Capital improvements: The board reviewed nearly $289.8 million in design and construction projects for 2014, while examining a six-year capital improvement plan for 2014-2019. Under the direction of Vice President for University Services Pam Wheelock, the U is realigning its capital planning process with the objectives outlined in President Kaler’s Platform for Excellence. The areas for investment include research and discovery, teaching and learning, stewardship (focusing on efficiency and effective use of resources) and enhancing the U’s reputation and impact on Minnesota communities. The board will act uponi the proposals at its June meeting.
  • Safety of Minors policy: A board committee reviewed a new board policy that sets expectations for university employees and volunteers who interact with or care for children on university grounds or are participating in U programs. The policy, which extends responsibility from educators to all U employees and volunteers, will be offered to the full board for a vote in June. The actions respond to an earlier review of the university’s compliance functions, oversight and culture following the findings of child sexual abuse at Penn State.
  • Duluth campus master plan: Chancellor Lendley Black and Vice President for University Services Pam Wheelock reviewed the campus master plan. It outlines potential projects to make the campus more visible and integrated into the surrounding community, create a grand entrance and enhance pedestrian and bicycle access.
  • Academic "grand slam": The University of Minnesota was one of four universities in the country to have faculty elected to each of the four major national academies in 2012-13, joining the University of California, Los Angeles (UCLA), the University of Chicago and Stanford University. The board recognized: Bruce Blazar, M.D., Regents professor of pediatrics and director of the Center for Translational Medicine (elected to the Institute of Medicine); Steven Crouch, dean of the College of Science and Engineering and professor of civil engineering (National Academy of Engineering); Sarah Hobbie, professor of ecology, evolution and behavior (National Academy of Sciences); and Renata Wentzcovich, professor of chemical engineering and materials science (American Academy of Arts and Sciences).
  • Distinguished McKnight University Professor award: The five recipients of the 2013 Distinguished McKnight University Professor award were recognized: Paul Glewwe, professor of applied economics; Gary Muehlbauer, professor of agronomy and plant genetics; Andrew Oxenham, professor of otolaryngology; Barbara Yelke, professor of history; and Zhi-Li Zhang, professor of computer science and engineering.
  • University excellence: The board recognized recipients of the following honors for 2013: Academy of Distinguished Teachers awards; John Tate Award for Undergraduate Advising; Josie R. Johnson Award for Human Rights and Social Justice; Outstanding Community Service award; President’s Community-Engaged Scholar award; President’s Award for Outstanding Service; Goldwater, Truman and Udall scholarships; NCAA champions; and Patty Kazmaier Memorial Award.
  • U Market: Regents received a first peak of U Market, an eProcurement system that will improve the process for purchasing goods and provide faculty and staff with access to common vendors and contract prices. The system is undergoing final work and is expected to launch this summer.

For more information about the Board of Regents, go to

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