The University of Minnesota is in the process of working on new agreements with Fairview Health Services that will allow the U of M to take ownership of its flagship medical center and facilities, including M Health Fairview East and West Bank hospitals and Masonic Children’s Hospital.

The two entities entered into an agreement in 1997, which expires in 2026. Under a letter of intent signed by both parties earlier this year, they have to outline how they’ll work together in the future by Sep. 30.

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“It’s a difficult point in our relationship,” said Jakub Tolar, dean of the medical school.

He provided an update to the Board of Regents Committee on Academic Health on Thursday, explaining both parties are still committed to sharing information needed to move forward with the transaction.

“Through the summer, we will develop models that can be actionable in the fall,” said Tolar.

Fairview Spokesperson Aimee Jordan confirmed by email that the timeline outlined in the letter of intent has not changed.

During last month’s meeting, consultants helping the U of M with the transaction explained they were exchanging data with Fairview to help determine the value of the University of Minnesota Medical Center (UMMC) facilities.

The transaction is expected to happen in two phases. According to the presentation, the U of M will take 51% ownership and operate UMMC as a joint venture by roughly 2025. The University will fully own and operate UMMC by 2027.

“Transferring operations as complex as multiple hospitals, dozens of clinical services is very complicated,” said Clifford Stromberg, Partner, Hogan Lovells, during the May 9 meeting.

He explained to the regents that financial terms, price, operational and transitional terms all have to be agreed upon.

“We don’t want to leave the impression that this is certainty,” he said. “It’s something we’re working very hard on and time will tell whether we get to the finish line.”