Fairview Health Services is not looking for a merger partner right now.
Minneapolis-based Fairview said Wednesday it does not support merging with Duluth, Minnesota-based Essentia Health as part of a larger plan with the University of Minnesota to form a nonprofit entity that would boost financial support for the school.
Related: University of Minnesota, Essentia in talks to form nonprofit
The University of Minnesota and Essentia said in January they were in early talks to form an “all-Minnesota health solution,” providing little detail on how the entity would be structured. The two organizations pledged to invest $1 billion over five years into the proposed nonprofit.
"While we are open to a partnership, when it comes to a proposed merger between Fairview, the University and Essentia — our answer is no," Fairview President and CEO James Hereford and board chair John Heinmiller said in a letter to employees. "We believe it is essential for Fairview to maintain our independence and commitment to the patients and communities we serve and to continue the improved performance that Fairview has achieved in the last two years."
Fairview and Sioux Falls, South Dakota-based Sanford Health called off their proposed merger in 2023.
The University of Minnesota said in a statement it remains hopeful for a solution. Its Board of Regents will discuss the framework for the proposed nonprofit in meetings later this week.
A Fairview spokesperson said the system will continue to engage with the university and Essentia about their plans for a nonprofit as well as partnership opportunities.
An Essentia spokesperson said the system is in discussions with the university to help ensure patients have access to care. The system recently sought to merge with Marshfield Clinic in Wisconsin, but the deal fell through in early 2024.
The university and Fairview are still working to solidify a deal to return ownership of the M Health Fairview University of Minnesota Medical Center back to the school. The two organizations signed a letter of intent about a year ago but have yet to announce a definitive agreement. In the nonbinding letter of intent, the university said it would pay Fairview 51% of the to-be-determined purchase price for the medical center and then jointly manage the facility with Fairview until it completes the purchase in a few years.
Fairview and the university are also reworking the contract that formed M Health Fairview, a clinical joint venture. In late 2023, Fairview said it would not renew the contract because it "threatens the sustainability" of the health system.
