Fairview Health System won't have ready cash for its $87.5 million purchase of the University of Minnesota Hospital and Clinics in January, but the transaction will go through with a six-month promissory note.
Its plans for a $180 million bond issue, part of which will finance the deal, ran up against lobbying by disgruntled unions. Fairview intends to dump the university workers' unions after it acquires the university health system. At least one union is trying to force Fairview back to the bargaining table by holding up the bond issue.
Last week, Fairview indefinitely postponed its request for Minneapolis City Council approval of the issue. A Fairview spokeswoman said system executives need more time to talk with council members. She said the decision "has more to do with the holiday season" than lobbying by the American Federation of State, County and Municipal Employees.
AFSCME represents nearly 1,000 university hospital workers. It already was unsuccessful in an attempt to trigger state antitrust scrutiny of the deal (Dec. 9, p. 16).
The bond issue must be approved by both the Minneapolis City Council and the Minnesota Department of Economic Development.