Regents at the University of Minnesota expressed support Friday for a proposed merger of the Fairview and Essentia health systems, but next steps are unclear since Fairview said no to the idea earlier this week.
The board’s academic health committee did not take a formal vote on the merger concept during a meeting earlier this week, but members enthusiastically endorsed the idea as well as continued talks, said Dr. Penny Wheeler, the health committee’s chair, during a Board of Regents meeting Friday.
“We know that there’s ways to go between here and there, and there’s future conversations that we certainly hope will take place with Fairview,” said Wheeler, who formerly was chief executive at Allina Health, one of the state’s largest health systems.
In January, the U proposed Essentia and Fairview merge in a new nonprofit health system that would support the university’s medical school and academic health programs.
Fairview Health Services, which has provided financial support to these programs for decades, said no to the merger idea Wednesday, saying the Minneapolis-based health system wants to maintain its independence.
A spokeswoman Friday reiterated Fairview’s opposition, while noting a “strategic partnership” with Duluth-based Essentia and the U remains possible.
The health system and university have considered and adopted a variety of structural changes through the years in hopes of bolstering the academic health program.
In February 2024, Fairview and the U signed a letter of intent to negotiate a deal for the U to buy back University of Minnesota Medical Center from Fairview, which purchased the teaching hospital in a financial bailout in 1997.