Minnesota
What's a fair price for University of Minnesota Medical Center?
The proposed deal for the University of Minnesota to buy back its teaching hospital is entering a key phase, with the U and Fairview having hired consultants and exchanged data to determine a reasonable price tag for the sprawling medical center in Minneapolis.
Within the next six weeks, the U and Fairview hope to get close to a consensus on price. If they can, the two sides will move to the next phase of the transaction, which includes a re-write of their complex affiliation agreement, said Myron Frans, senior advisor on the deal to the U’s interim president.
The U and Fairview signed a letter of intent in February to transfer ownership of University of Minnesota Medical Center (UMMC), which the health system acquired in a financial bailout during the 1990s.
Fairview maintains that the sale price must cover the health system’s debt on the facilities, the document notes. The letter also expressed the university’s position that it should not pay more than fair value for the medical center, irrespective of outstanding debt.
“We have to get to some major threshold issues, to make sure we’re on the right track,” Frans said in an interview. “It’s going to be whatever it’s going to be … but our intent would be to do it in less than six weeks.”
He added: “At this point, obviously, we are on track. We don’t have any warning signs.”
Minneapolis-based Fairview Health Services said in a statement: “Everything is on track with the timeline outlined in the [letter of intent].”
The letter of intent came 15 months after Fairview proposed an ill-fated merger with South Dakota-based Sanford Health. U officials opposed the marriage as it would have transferred control of UMMC to an out-of-state entity.
About 70% of physicians practicing in Minnesota trained at the university, where the U hospital is a primary teaching and training venue. Fairview employs about 34,000 people and runs one of the state’s largest health systems.
On Thursday, documents presented to a subcommittee of the U’s board of regents included a timeline with the impending milestone for whether to proceed.
Fairview and the U have each hired consulting firms to help place a value on the hospital, Keith Ghezzi, managing director of Alvarez & Marshal, said during the subcommittee meeting.
“The next major decision point will be after a preliminary valuation has been performed by [each side’s consultant] and we have an opportunity to see how those valuations may align,” Ghezzi said.
As it now stands, the U and Fairview would have a first closing of the transaction by the end of this year, with the U paying Fairview 51% of the negotiated price at that time. Funds for the health system’s remaining stake would be placed in escrow. A second closing, including transfer of the remaining funds, would happen by the end of 2027.
Ghezzi’s firm is one of three consultants the university has hired to work on the proposed acquisition.
“We’re moving forward and we’re thrilled with the expertise the university administration has brought to bear on this,” Janie Mayeron, the board of regents chair, said Thursday after the subcommittee meeting.
Consultants thus have received about half of the data they need from Fairview in order to develop the valuation, Ghezzi said. That’s not a worrisomely small amount, Frans said, noting that it takes time for Fairview to extract financial data on University of Minnesota Medical Center form the health system’s broader financials.
Frans, who earlier this year retired after serving as the U’s senior vice president for finance and operations, is a Fairview board member.
The university wants to own the teaching hospital to control governance and operations, Frans said, including infrastructure investments that could make it easier for patients to receive unique specialty services at UMMC.
“We have a capacity problem — we’re more than full almost every day,” Frans said. “We want to be able to make sure that we provide the access to the people of Minnesota, to that level of care.”
University of Minnesota Medical Center includes a large hospital for adult patients on the East Bank campus as well as a pediatric hospital and inpatient mental health facility near the U’s West Bank campus. Fairview currently owns all three of these facilities.
UMMC also includes a large outpatient surgery and specialty care center on the East Bank campus that’s jointly operated by Fairview and the U in a building that’s owned by the university. The sale would give the U ownership of all four operations.
Minnesota
Game Recap: Kings 5, Wild 4 (S/O) | Minnesota Wild
Matt Boldy scored late in the third to tie it and ultimately send the game to overtime, helping the Wild (25-10-8) extend their point streak to six games (3-0-3). Brock Faber had a goal and an assist, Jake Middleton and Joel Eriksson Ek also scored, and Jesper Wallstedt made 34 saves.
It was the second game of a back-to-back for Minnesota, which is coming off a 5-2 win at the Anaheim Ducks on Friday. The Wild and Kings will play again in Los Angeles on Monday.
“It was far from perfect of a game from us,” Faber said. “I thought we could have played better. With that quick turnaround, we’ll take the point. Now we need two in the next.”
Kempe put the Kings up 1-0 at 6:08 of the first period, scoring on a wrist shot from close range off Anze Kopitar’s cross-slot pass from below the goal line.
Middleton tied it up 1-1 at 8:28, getting his first goal of the season in 36 games on a snap shot from the left circle set up by Mats Zuccarello.
“I think he thought I was Kirill (Kaprizov) in the slot there, so it was nice to get one,” Middleton joked. “I normally have a few goals before I take 35 games off from scoring, so this one was getting a little stressful but we got it out of the way.”
Perry gave Los Angeles a 2-1 lead at 16:57 of the second period when Byfield’s shot struck him in the wrist and redirected in for the power-play goal.
Eriksson Ek tied it 2-2 at 18:23 on the power play, taking Quinn Hughes’ stretch pass at the offensive blue line for a short breakaway, fending off defenseman Joel Edmundson and scoring on a wrist shot from the left circle.
Byfield put Los Angeles back in front 3-2 at 4:54 of the third period. He shot the puck caroming off the boards back into the crease, where Wallstedt lost it in his skates and it was eventually knocked in by a Wild stick during the ensuing scramble in front.
“Shouldn’t be, that was terrible,” Byfield joked when asked if he knew it was his goal. “No, it’s good. I think it’s two now that were liked that, so I’ll take them how they come.”
Minnesota
Minnesota Gov. Tim Walz on the defensive as fraud allegations mount after viral video uncovered Somali aid scheme
Minnesota Gov. Tim Walz pushed back against the ever-growing fraud allegations levied against him in the disastrous aftermath of a viral video where an independent journalist cracked open a crucial part of the alleged Somali aid scheme.
A spokesperson for Walz, a Democrat who frequently provokes President Trump’s ire, addressed a bombshell video posted by conservative YouTuber Nick Shirley.
“The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action. He has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed,” the spokesperson told Fox News.
The spokesperson added that Walz has “hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.”
In the 43-minute video published on Friday, Shirley and a Minnesotan named David travel around Minneapolis and visit multiple childcare and learning centers allegedly owned by Somali immigrants.
Many were either shuttered entirely, despite signage indicating they were open, or helmed by staff who refused to participate in the video.
One of the buildings they visited displayed a misspelled sign reading “Quality Learing Center.” The ‘learning’ center is supposed to account for at least 99 children and funneled roughly $4 million in state funds, according to the video.
Shirley appeared on Fox News’ “The Big Weekend Show” on Sunday evening and boasted about his findings. He joked that the alleged scheme was “so obvious” that a “kindergartener could figure out there is fraud going on.”
“Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening,” Shirley said.
“There better be change. People are demanding it. The investigation have been launched just from that video alone. So there better be change, like I said we work way too hard to be paying taxes and not knowing where our money’s going,” he added.
Many officials have echoed Shirley’s calls for change, with FBI Director Kash Patel even announcing that the agency surged extra personnel to investigate the resources doled out to Minnesota. He said this is one of the first steps in a wide-reaching effort to “dismantle large-scale fraud schemes exploiting federal programs.”
Federal investigators say half of the $18 billion granted to Minnesota since 2018 could have been stolen by fraudulent schemes — amounting to up to $9 billion in theft.
As of Saturday evening, 86 people have been charged in relation to these fraud scams, with 59 convicted so far.
Most of those accused of fraud come from Minnesota’s Somali community.
Shirley’s mega-viral video cracked 100 million views Sunday night.
Minnesota
FBI deploys more resources to ‘dismantle fraud schemes’ in Minnesota
The FBI has deployed additional personnel and investigative resources to Minnesota to “dismantle large-scale fraud schemes exploiting federal programs”, director Kash Patel said on social media on Sunday.
The FBI director said the agency had already dismantled a $250m fraud scheme that stole federal food aid meant for vulnerable children during the Covid pandemic in a case that led to 78 indictments and 57 convictions.
Patel said the FBI believes “this is just the tip of a very large iceberg”. Some of those involved in the alleged scheme are being “referred to immigrations officials for possible further denaturalization and deportation proceedings where eligible”.
Patel’s comments comes after federal prosecutors estimate as much as $9bn has been stolen across schemes linked to the state’s Somalia population, a figure nearly equivalent to Somalia’s entire GDP.
The FBI director also said he was aware of recent social media reports in Minnesota, which appears to refer to an online report by independent journalist Nick Shirley about a daycare center in Minneapolis that received $4m despite reportedly having no enrolled kids. The 42-minute video has been viewed 84m times since it was posted on 26 December.
Patel said the FBI had surged personnel and resources into the state before the video and attendant conversation escalated online.
The Trump administration has portrayed Minnesota’s Somali immigrant community as a locus of widespread fraud, much of it allegedly perpetrated during the Covid pandemic.
Last month, Donald Trump ended legal protections for Somalis in Minnesota and accused the state of being “a hub of fraudulent money laundering activity” under its Democratic governor, Tim Walz.
Somali Americans, Trump has said, “come from hell”, “contribute nothing” and should “go back to where they came from”. He has also described Minnesota’s Democratic representative Ilhan Omar as “garbage” and said “her friends are garbage.”
Omar has called Trump’s “obsession” with her and Somali Americans “creepy and unhealthy.”
“We are not, and I am not, someone to be intimidated,” Omar said earlier this month, “and we are not gonna be scapegoated.”
Omar has accused agents with Immigration and Customs Enforcement (ICE) of pulling her constituents off the streets, including questioning her son. She has said she is being forced to address questions about her own immigration status.
In an interview with the Minnesota Star Tribune published on Friday, Omar called Trump’s immigration policy “cruel” during his first administration, “and now it’s just outright dangerous and severely inhumane” and “geared towards this sort of white supremacist view of what America should be”.
And she worries that “we’re not even at the worst yet, that there is probably more to come.”
Omar has come under further pressure from the administration after it was revealed that her husband and former political consultant, Tim Mynett’s, $25m venture capital firm, Rose Lake Capital, recently purged key officer details from its website after questions were raised about the couple’s wealth.
The couple’s net worth surged 3,500% in just one year, according to reports, and their net worth is now anywhere between $6m and $30m. The venture capital firm alone, per the filing, is worth between $5m and $25m.
The firm’s officials and advisors that have been removed from Rose Lake Capital’s website include Adam Ereli, Barack Obama’s former ambassador to Bahrain; Max Baucus, Obama’s ambassador to China; Alex Hoffman, the former finance chair of the Democratic National Committee; and former DNC treasurer William Derrough.
Omar has not been accused of wrongdoing, but reports say that three people accused of defrauding the state have alleged ties to the congresswoman.
Asked about her support of the Meals Act, a bill that changed school meal reimbursement rules during the pandemic and has been connected to systems of fraud, Omar told Fox News Digital, it has not contributed to the fraud and “it did help feed kids”.
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