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University of Minnesota Board of Regents to consider new integrated academic health care structure to enhance patient care, education and research

Proposed agreement is among U, Fairview Health Services and University of Minnesota Physicians

May 3, 2013

What: University of Minnesota Board of Regents meetings
When: Thursday, May 9 and Friday, May 10, 2013
Where: 600 McNamara Alumni Center, 200 Oak St. S.E., Minneapolis

For media only:

What: Media briefing detailing proposed integrated structure agreement; information embargoed until Friday morning
Who: Dr. Bobbi Daniels, CEO of University of Minnesota Physicians; Carolyn Wilson, president of University of Minnesota Medical Center, Fairview; Dr. Aaron Friedman, vice president for Health Sciences and dean of the U’s Medical School; Charles Mooty, interim CEO of Fairview Health Services
When: Noon – 12:45 p.m. Thursday, May 9, 2013
Where: Location to be determined

On Friday, May 10, the University of Minnesota Board of Regents will review and act on an agreement to enhance the working relationship among the University of Minnesota, Fairview Health Services and University of Minnesota Physicians (UMP).

Pending Board of Regents approval, the agreement will:

  • Improve patient care by creating a more seamless experience for patients across the continuum of care – essential as health care reform is implemented across the country. This will result in more efficient operations, lower costs and a better patient experience by delivering the right care at the right place at the right time.
  • Enhance the Academic Health Center’s education mission by providing additional funding to improve the national standing of the Medical School and other health professional schools at the U, and to increase on-site training and interprofessional education opportunities for students
  • Support health care research through increased focus on clinical trials and streamlining the process for taking lab work to the bedside so discoveries can benefit patients

The integrated structure agreement is a significant step forward that enhances the business relationship among the U, Fairview and UMP. The three organizations have been working together since 1997.

Through a new shared governance structure, creation of a single strategic plan and alignment to form a single management team, the new structure will integrate the operations and finances of the organizations without merging them. The three organizations would remain independent with separate financial balance sheets. If approved, the agreements would include operations at University of Minnesota Medical Center, 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 regents approved letters of intent outlining the goals of negotiations among the organizations in May 2012. The new integrated structure agreements were approved by the UMP Board of Directors on April 17, 2013 and the Fairview Board of Directors on April 18. Regents’ review and action are the final action steps in the board approval process.

The integrated structure agreements would also facilitate the development of a new Ambulatory Care Center on the U’s Minneapolis campus. The center would provide new space for clinics currently in the outdated Phillips Wangensteen Building and provide much-needed expansion space for a variety of clinics. The clinic is expected to open in 2016.

Other Board of Regents agenda items:

  • Six-year capital improvement plan: The plan outlines capital projects for the U of M system recommended for fiscal years 2014-2019. Projects are initially defined by academic units, based on unit and university strategic priorities. The plan also provides an overview for the U’s future capital requests to the Minnesota Legislature.
  • 2014 annual capital improvement budget: The proposed budget would authorize design and construction projects totaling nearly $289.8 million – 60 percent paid by state bonding and 40 percent by the U.
  • Safety of Minors policy: This is 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 responds to an earlier review of the university’s compliance functions, oversight and culture following the findings of child sexual abuse at Penn State.
  • Swearing in: Minnesota Chief Justice Lorie Skjerven Gildea will swear in newly elected regents. Current Board Chair Linda Cohen and current Regent Dean Johnson were re-elected by legislators in March. In addition, Peggy Lucas and Abdul Omari were elected for a first term to the board.
  • Duluth campus master plan: Chancellor Lendley Black and Vice President for University Services Pam Wheelock will review the campus master plan. It outlines potential projects that would make the campus more visible and integrated into the surrounding community, create a grand entrance to campus and make the campus more pedestrian-and bicycle-friendly.
  • Undergraduate student income distribution: Vice Provost Robert McMaster will provide an overview of a recent analysis of the income distribution of U undergraduates. Student representatives to the board raised questions about the topic during a 2012 presentation.
  • Academic program review: McMaster will outline plans to review the U’s academic programs to ensure accountability, continuous program improvement and program alignment with the university’s priorities and values.

For more information about the Board of Regents agenda, go to

Twin Cities Campus: