Springfield, Mayo Clinic Health System reach separation agreement
SPRINGFIELD, Minn. (KEYC) — The City of Springfield recently announced that the city and Mayo Clinic Health System have mutually agreed to terminate its lease and affiliation agreements.
The city owns the land at the facility, while also owning improvements that were made to the Springfield Community Hospital and Springfield Medical Clinic.
The City of Springfield and Mayo Clinic Health System entered into a lease agreement on January 1, 1998. In December 2019, the Mayo Clinic Health System notified the city of its intent to default on the lease.
“We appreciate Mayo’s leadership team for working as a willing partner throughout this process. It was the City’s responsibility to ensure Springfield was reimbursed for Mayo’s default and that assets necessary to maintain the Medical Facility were returned,” City Manager Joe Stremcha said. “Mayo has been an integral part of our community for 22 years. We are sad to see this chapter come to a close, but we are equipped to maintain a strong health care presence for our community going forward.”
"We truly appreciate the community’s support and patience shown these past few months, Stremcha added. “We will continue working hard to ensure our rural health care needs are addressed and that we find a strong partner to join Allina Health in our state-of-the-art facility.”
The Springfield City Council approved a lease agreement with Allina Health to continue clinic operations. More information about the new partnership with Allina is expected to be released within the coming weeks.
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