I had a few rapid fire questions I sent over to James after our conversation, and this Q&A is memorialized here.
What's your leadership style? How do you get buy-in from both your administrative and clinical teams system-wide? How do you identify talent at Fairview and build teams?
I surround myself with very smart, talented and motivated people, collaboratively set the direction, and then let them go do great things with appropriate monitoring of their progress in terms of both execution and learning.
At Fairview, buy-in starts with creating clarity. People can handle hard decisions when they understand the "why." We talk often about leading with purpose—making sure everyone sees how their work contributes to our mission.
When building teams, I look for people who are curious, humble, and accountable. Technical skills matter, but character matters more. We've tried to shift the culture here to one where momentum beats perfection and where leadership is a mindset not a title.
We know a lot of the things facing hospitals and health systems today…labor shortages, rising physician subsidy costs, capacity management, Medicare Advantage denials…but what isn't being talked about that should? What are you talking about with your peers that keeps you up at night? What's top of mind, both good and bad?
There's a lot of discussion about labor costs, MA denials, payer negotiations—but I don't think we're talking enough about the fragility of the current commercial insurance model nor what the potential solutions could be.
For decades, healthcare systems have offset losses on the government side by shifting costs to the commercial side. That model is wearing thin. If employers start moving more aggressively toward ICHRAs, direct contracting, or defined contribution models for healthcare benefits, it will fundamentally reshape how health systems sustain themselves.
That's a strategic risk I think about a lot. And it's why we're trying to diversify revenue, improve operational resilience, and focus heavily on value creation—not just service volume.
In what ways are you engaging in health system transformation, both from a partnerships perspective, innovation perspective, and consumer perspective? How does physician investment move the needle for Fairview versus allocating capital to other projects? Are there any interesting new partnership models or ventures that are promising from your perspective? (e.g., your new Acadia joint venture, ASC strategy, observation unit expansion, ED expansion)
We know that the status quo is not sustainable and that the only way we can be successful over the long term is to drive significant levels of transformation. That level of transformation will require us to look at our clinical models of care as well as driving administrative efficiency. We also cannot do this by ourselves. We have to create smart partnerships to leverage their capabilities and capital investments.
We are deeply committed to addressing the social determinants of health through partnership. Collaborating with organizations like Second Harvest Heartland and the Sanneh Foundation, we operate our Hub for Health and Wellness, distributing more than 100,000 pounds of food each week to patients and families. We work closely with housing and public health partners to connect patients with stable housing and other essential services. We believe true community health improvement is only possible through deep trust, collaboration, and shared purpose.
We are expanding the use of AI for operational and administrative optimization and piloting ambient clinical documentation tools to ease the administrative burden on providers. We're investing in observation unit models and expanding our Hospital at Home program where it makes sense—helping improve throughput, access, and patient experience without defaulting to inpatient expansion.
From a consumer perspective, we are building faster, more flexible care options. We now have five Acute Diagnostic Services (ADS) sites across the Twin Cities—giving patients immediate access to diagnostic testing and minor procedures that historically would have required an emergency room visit or long wait times. For example, if a primary care physician identifies a concern during an appointment, the patient can often be sent to an ADS clinic and have an outpatient procedure scheduled that same day. It's a faster, smarter, and more patient-centered model.
We view transformation not as a destination, but as a perpetual capability—building a smarter, faster, and more resilient system prepared not just for today's healthcare environment, but for the realities of tomorrow.
Related to hospitals and health systems and AI…what is the most exciting use case today for Fairview? Is there anything you guys are working on in the near future you're looking forward to?
AI has tremendous potential, but we're approaching it with a "use case first, hype second" mentality.
Today, we're most excited about the operational uses of AI—things like predictive analytics for patient throughput, workforce scheduling, and revenue cycle optimization. Those are immediate ways AI can ease burdens and create real value.
On the clinical side, we're implementing AI-supported ambient documentation tools to reduce clinician administrative load, which we believe can have a meaningful impact on burnout.
What still needs to be built is a fully trustworthy, integrated AI platform that can support longitudinal patient care—seamlessly blending clinical decision support with operational data without creating more friction for providers.
What went into the decision to dis-affiliate from the University of Minnesota?
Our relationship with the University of Minnesota has been long and important, and we continue to recognize the essential role of the University's Medical School in Minnesota's healthcare ecosystem. That said, it became clear that the current relationship is not sustainable as currently constructed.
The decision to create a new partnership with the UofM wasn't about abandoning academic medicine—Fairview remains committed to supporting education, research, and high-quality clinical care. Rather, it's about creating the space for both organizations to chart sustainable futures that are culturally aligned and mission-focused.
Throughout this process, we've stayed grounded in a few key principles: improving lives, ensuring long-term financial and operational sustainability, protecting strong independent governance, and preserving our nonprofit mission.
We're currently participating in a facilitation process led by the Minnesota Attorney General's Office, aimed at reaching a fair and structured resolution. But ultimately, any decision about Fairview's future must be made by our board and leadership, with the best interests of our patients, employees, and communities at heart.
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