Many Minnesota health policy watchers, including myself, breathed a sigh of relief when news broke that a merger agreement between Fairview Health Services and Sanford Health was no longer on the agenda.
The merger threatened to bring the state’s major teaching hospitals under the ownership of out-of-state entities, creating a widespread and dangerous medical monopoly in the state.
Despite what hospital chains often say when they try to merge, that doing so will enable them to provide better quality care at lower cost, we believe that market consolidation in the healthcare sector is going in the opposite direction. I knew for a long time that I would do Raise prices without improving quality. I was lucky to avoid this bullet.
But don’t get too comfortable. We need to think about the next time and there may be a next time if we don’t act soon. This was the second attempt to merge for Sanford and Fairview, the first being in 2013. What is stopping the two companies from trying again in five or ten years? What if the can was just kicked into the street?
Luckily, we’ll at least be better prepared next time.Legislative branch passed a new law Crack down on medical monopolies. But can the risk be completely eliminated? Yes, by buying back our teaching hospital. There is no better way to permanently protect our state’s healthcare system than with a buyback.
The University of Minnesota conducts training 70% of our state doctors. It is irreplaceable. Our state, fortunately, is doing much better than others. There is a nationwide shortage of primary care physicians, we could do better too. Public control of the entire medical student-to-physician pipeline would provide a stronger means of securing the public power our country needs for its long-term future prosperity.
In addition to the obvious threat to our health, a worsening doctor shortage will have a negative impact on the economy. For example, when workforce health deteriorates, workers become less productive and less reliable.
A weakening of the University of Minnesota would mean a domino effect to an outcome that no one wants. Fortunately, public ownership of places where doctors train is common elsewhere.Veterans Affairs Facilities Nationwide Have Amazing Training 120,000 clinicians every year. In Chicago, the public hospital John H. Stroger Jr. Hospital in Cook County hosts the hospital. 400 doctors In training. There is no good reason why we shouldn’t do the same.
Public ownership of hospitals would also create a stronger environment for medical research. After all, research is what university hospitals are for. Hospitals are now under pressure to help Fairview emerge from its long-term financial woes.Fairview booked a loss approaching $1 billion for the past five years, and their credit rating was damaged It was announced in February following analysts’ bleak outlook. In an effort to stop the bleeding, Fairview has worked on: Reducing university funding obligations for academic medicine. Returning the hospital to public ownership will require a stable funding plan, but the effort and resources will allow the university to continue its world-class research without exposure to this type of threat. Why should the state get involved in the Fairview issue as it is now?
The university has until Dec. 31 to decide whether to end its relationship with Fairview, and such a move would require a lot of planning. While it’s true that some people in the U.S. aren’t confident enough to support this kind of action at this point, that’s no excuse for inaction. If the university decides to quit, the change won’t actually go into effect for him until 2026. Ultimately, we have to plan the University of Minnesota system we want in the future, rather than arguing about what we think now.
Bringing the University of Minnesota Medical Center back into safe public hands is an important step in that direction.
