Fairview Health Services and the University of Minnesota Walk Away from Merger Talks

TheUniversity of Minnesota Medical School, in the face of serious financial problems twenty years ago, sold its hospital and clinics to a community health system,Fairview Health Services. In a number of ways, the relationship has not been a happy one in the sense that goals of a community hospital often do not always align with those of an academic teaching and research institution. A recent attempt has been made to negotiate a"merger" of Fairview with the U of M Medical School, creating a single management layer. But this effort has now collapsed with the Medical School casting about for a new hospital and clinic partner (see:Collapse of Fairview merger leaves U casting about for a partner). Below is an excerpt from the article:On paper at least, Fairview was the most logical partner to extend the U's clinical reach beyond campus. The two have worked together for 20 years, ever since the U sold its hospital and clinics to Fairview. Now, ironically, that sale could hamper the U's efforts to find a new partner. While the U can offer suitors the clinical expertise of its 750 physicians, it can't bring to the table the facilities where they work."The university lost control of their university hospital, which is their primary teaching and research site," ...[said a faculty member]."It is kind of like you sell your factory but you still make your parts there."The U sold the hospi...
Source: Lab Soft News - Category: Laboratory Medicine Authors: Tags: Healthcare Business Healthcare Delivery Hospital Executive Management Hospital Financial Medical Education Source Type: blogs