Fairview, University and UMPhysicians approve new operating model to improve care, education, research

University of Minnesota Medical
Center—East Bank
May 10, 2013
Fairview, the University of Minnesota and University of Minnesota Physicians have all approved an agreement to enhance the working relationship among them. The University of Minnesota Board of Regents provided the final approval today.

The integrated structure arrangement outlines a new shared governance structure, creation of a single strategic plan and alignment to form a single management team. The structure will integrate the operations and finances of the three organizations without merging them. Closer alignment will help achieve shared goals of clinical quality, education and research to better serve patients, families, students, researchers and communities.

Evolving to better serve patients and improve health
“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,” says Dr. Bobbi Daniels, chief executive officer of University of Minnesota Physicians (UMPhysicians).

Key points in the agreement
Specifically, the five-year 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 also will provide more on-site training and interprofessional education opportunities for students.
  • Increase focus on research and clinical trials, while streamlining the process for taking lab work to the bedside so discoveries can benefit patients.

A new 12-member Board of Governors consisting of medical experts will be established.
Our commitment to creating a top-tier academic health system
“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, as well as complex patient care and research,” says 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 budget associated with the integrated structure agreement outlines additional academic support payments to the Medical School annually for the next 10 years. Annual amounts 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.

The integrated structure agreement was previously approved by the UMPhysicians Board of Directors April 17, 2013 and the Fairview Board of Directors April 18. It will be retroactive to January 2013, since the organizations have already begun to integrate their work.

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

“The new integrated structure demonstrates our collective commitment to patient care, research and education,” says Chuck Mooty, interim CEO of Fairview. ‘This is the natural next step in our partnership, paving the way for even more innovation and improvements in care for the communities we serve."
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