University of Minnesota's medical facilities face uncertain future amid two proposals
MINNEAPOLIS -- What exactly is happening with the University of Minnesota's medical facilities and how much is it going to cost taxpayers?
Critics fear a proposed merger between Fairview hospitals and South Dakota-based Sanford Health would leave Minnesota taxpayer-funded medical facilities headquartered in South Dakota. Myron Frans, Senior Vice-President of Finance at the University of Minnesota, says it was these concerns that resulted in the state stepping in and blocking the same merger in 2013. One option is for the University to buy back its medical facilities -- but that's going to cost taxpayers a lot of money.
In a statement M Health Fairview said: "We're committed to honoring the existing agreements with the University while we work together on the terms of a repurchase and what a future partnership could look like. Ultimately, the University and it's medical school have complete control over that decision."
The University of Minnesota medical school and its facilities are prized for their research and for the fact that 70% of Minnesota's doctors are trained there.
Barreling forward is a proposal that would merge South Dakota-based Sanford Health with Fairview hospitals that oversee the univeristy's facilities. Back in the 1990s, Fairview bailed out the U of M medical facilities and they have been jointly operated ever since. Fairview even provides $80 million a year of funding to the university.
There is a very rapid timeline for that merger which would complete the deal in little more than a month. That could mean control of the U's taxpayer-funded facilities would be transferred to a company based in South Dakota.
There are widespread concerns about that, including having a headquarters in a far more conservative state were abortion is illegal.
Those concerns are why the state blocked this same proposed merger back in 2013. But now there is a second scenario.
In light of the merger the U is proposing buying back its medical facilities and building a new hospital on the East Bank campus. But there is one big question - the U would need taxpayer funds and no one is saying what the taxpayer bill would be.
Myron Frans is the Senior Vice President for Finance and Operations at the U of M. He was a guest on WCCO Sunday morning at 10:30am.
"I don't know the answer to that and its a big question," Frans said when WCCO's Esme Murphy asked about taxpayer costs.
"It's not just a simple sale. Those assets have to retain the purpose for which they were created, and that is to the service of the university's academic health mission," he added.
Minnesota Attorney General Keith Ellison is conducting a listening tour, stopping around the state to hear what people have to say about the merger. One big worry that the merger could make health care more expensive.
Sanford maintains it will do just the opposite and make quality health care more accessible in farm and rural areas. Ellison has the power to block the merger by filing a lawsuit, but he hasn't said if he will do that yet.
So the months ahead will shape what is a very uncertain future for the university, its medical facilities, patients, and taxpayers.
You can watch WCCO Sunday Morning with Esme Murphy and Joseph Dames at 6 a.m. and 10:30am every week.