13 October 2023
ST. CLOUD A regional medical school campus slated for St. Cloud earned a key vote Oct. 13 as the process continues to move along, with hopes to open in 2025 with 24 students.
The University of Minnesota Board of Regents on Friday, Oct. 13, approved the academic affiliation agreement between the University of Minnesota Medical School and CentraCare.
“By approving the affiliation agreement now, Medical School and CentraCare can start to move forward toward accreditation and amending the first class of students in the fall of 2025,” Regent and Chair of the Special Committee on Academic Health Penny Wheeler said at Friday’s meeting.
Wheeler also said the board will now have the ability to review and act on a financial plan. If the financial plan is not accepted by the Board of Regents, the agreement would be terminated.
A Special Committee on Academic Health has received a copy of the financial plan and feels confident that it’s heading in the right direction, Wheeler said.
If approved, the plan would bring a regional campus of the Medical School to St. Cloud, based at CentraCare with a proposed 24 students per year.
“We want to make sure that this is a sustainable endeavor for all served. The special committee received a preview of that financial plan and feels confident it’s moving in the right direction,” Wheeler said.
Plans also include expanding residency programming in rural physician-shortage areas, a new footprint in clinic research focused on rural health and new collaborations between the two organizations.
The two organizations received legislative funding in 2023, including $5 million for the facility and $10 million for programmatic support. Plans are to ask for some of that funding to be reallocated to help with costs related to startup and operations, the medical school’s associate dean and chief financial William Sibert said at a Thursday meeting of the Special Committee on Academic Health.
Once fully operational, it’s projected the project will have an annual deficit of $1.5 million. However, that number is “conservative,” Sibert said, noting it only accounts for tuition income and excludes philanthropy and re-allocations.
The CentraCare Foundation has kicked off a $50 million community philanthropy campaign to support the endeavor.
In a statement presented to the special committee, CentraCare CEO Mike Blair said in the event the company doesn’t receive sufficient philanthropic funding, which he deemed unlikely, they are committed to the vision and will meet its obligation.
CentraCare has invested more than $100 million to enhance rural health across the region through its network of nine hospitals and more than 30 clinics across Minnesota, according to the organization.
In December, the Board of Regents is expected to review the financial agreement with action anticipated during the board’s meeting in February 2023.
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