Why UMN Health Is Seeking $950M in State Funding

The organization wants to keep out-of-state organizations from controlling Minnesota’s academic health system. 

The University of Minnesota has reached out to the State of Minnesota to request state support for its health system, UMN Health—an organization with 743 beds and over $1 billion in revenue.

UMN Health says it is requesting state support so it can acquire and operate flagship healthcare facilities before a merger between Fairview and Sanford is completed, to prevent out-of-state control of Minnesota’s academic health system. 

"Before us is a once-in-a-lifetime opportunity to channel the University’s 170-plus year legacy of discovery, service, and world-class impact to elevate the health of Minnesotans for generations to come," University President Joan Gabel said in a release. "But we can only do so through a strong partnership with the State. The positive return on this investment is clear."

UMN Health is requesting preliminary funds of $300 million so it can acquire the University Medical Center East and West Bank facilities, Masonic Children’s Hospital, and the Clinics and Surgery Center. The funds will be used to support the facilities’ workforces, leaders, and union contracts. UMN Health is also requesting a further $650 million in funding so it can successfully operate these facilities and cover payroll, supplies, as well as other professional services. The money will also be used to provide time to turn around operating losses and begin generating positive financial results.   

This request is subject to formal Board of Regents action, which is expected on March 10, 2023.

"We must forge a new path: one that centers on the needs of Minnesotans’ healthcare now and for decades to come," Myron Frans, senior vice president for finance and operations, said in the release. "One that recognizes the economic benefits of continuing our best-in-class healthcare sector, including the education and training of future healthcare professionals. And one that recognizes the treatments and cures U of M researchers will discover."