Fairview Health plans building boom

Minneapolis-based Fairview Health Services is making construction plans after freeing up cash from the recent sale of its Red Wing Medical Center to the Rochester-based Mayo Clinic. Finance & Commerce reports major construction projects appear to be in the works for Southdale Hospital in Edina and Ridges Hospital in Burnsville.
Author:
Updated:
Original:

Minneapolis-based Fairview Health Services is making construction plans after freeing up cash from the recent sale of its Red Wing Medical Center to the Rochester-based Mayo Clinic. Finance & Commerce reports major construction projects appear to be in the works for Southdale Hospital in Edina and Ridges Hospital in Burnsville.

Mayo Clinic paid $64 million to acquire the hospital and medical group in Red Wing, the Pioneer Press reports. Fairview also freed up about $54 million-worth of bonding proceeds allocated toward the Red Wing hospital and is seeking approval to spend the money elsewhere.

The Minneapolis-based health system is trying to move past an overly aggressive bill-collecting scandal involving its contractor Chicago-based Accretive Health. Fairview's board of directors ousted now former CEO Mark Eustis amid the investigation.

In June, Moody’s Investors Service downgraded Fairview's $836 million in debt. The bond rating agency cited a “significant downturn in financial performance,” as well as “potential reputational risks."

Next Up

PD Shimmers closeup

Man with Parkinson's lights up Plymouth with synchronized light show

"The best medicine I have for my disease is what I try to do with the light show," Mike Justak said.

Screen Shot 2020-11-25 at 7.34.43 AM

Watch: Drunk squirrel in Minnesota captures the world's attention

The squirrel was immediately cut off after nearly tipping over.

Screen Shot 2020-11-25 at 7.15.09 PM

Small town gym refusing to close facing lawsuit from attorney general

The gym is facing a lawsuit and a temporary restraining order to halt their operations.

credit card, payment

Money Gal Coaching: Bouncing back after living your best life

Kelly Blodgett started Money Gal Coaching after paying down nearly $50K in debt in 18 months.

flickr-mall-of-america-mitchell-hirsch-march-2019

When do stores open on Black Friday this year?

Many major retailers will be open Black Friday, some for extended hours.

police tape, crime scene

Man found dead outside home near Cass Lake

The man was reportedly shot outside the property.

Minnesota_Welcome_Sign_-_Minnesota_Welcomes_You_-_Taylors_Falls_(28269804891)

Gov. Walz announces $1M in grants to boost Minnesota tourism

The money will be used for marketing efforts to attract people to Minnesota's hard-hit tourist spots.

coronavirus, ICU

Nov. 25 COVID-19 update: 72 deaths ties Minnesota's single-day high

A COVID-19 update will not be provided on Thanksgiving Day.

Texa-Tonka

Revival to open its fourth Twin Cities location

The fried chicken and smoked meat maestros are moving to St. Louis Park.

Related

Mayo Clinic to acquire Fairview hospital in Red Wing

Rochester-based Mayo Clinic and Minneapolis-based Fairview Health Services have signed a tentative agreement to transfer control of Red Wing Medical Center. Mayo Clinic Health System hopes to assume operations by July 1. The deal follows months of discussion.

Mayo Clinic and Fairview Red Wing continue merger negotiations

The two health care providers began reviewing the potential merger about five months ago. A Fairview Red Wing official told the Republican Eagle that a final decision is expected to be made in the next several months. Lake City and Cannon Falls are already part of the Mayo Clinic Health System.

Fairview Ridges announces $60M expansion

Fairview Ridges Hospital in Burnsville plans to add a150,000-square-foot specialty care medical office building, hospital expansion and a new parking ramp, the Business Journal reports. The project will cost about $60 million.

Fairview Health Services terminates contract with Accretive Health

The health care system felt it was necessary to cut its ties with the debt collector. Minnesota Attorney General Lori Swanson accused Chicago-based Accretive of using high-pressure strategies to get Minnesota hospital patients to pay for their treatments. The Business Journal reports Fairview began reducing its contract with the collection firm after a laptop with unencrypted patient information was stolen. Meanwhile, a Democratic Congressman from California is now calling for a federal investigation.

Fairview Health buys Minneapolis, Bloomington clinics

The Bloomington location will begin operating as a Fairview clinic this month. The Minneapolis clinic, which was destroyed by fire earlier this year, will re-open as a Fairview clinic in the spring.

Regulators: Billing practices at Fairview violated federal patient-protection laws

The aggressive practices used by the Chicago-based Accrective Health to collect debt from patients could put Fairview's University of Minnesota Medical Center at risk of being terminated from Medicare and Medicaid, according to the Star Tribune. Federal documents obtained by the newspaper show patients and their relatives were subjected to "abuse and harassment'' from debt collectors while waiting for treatment.