Allina To Join CA-Based Sutter Health

Allina Health and Sacramento-based Sutter Health have signed a letter of intent for Allina to join Sutter, creating a combined nonprofit health system serving Minnesota, western Wisconsin, and northern and central California, the two organizations announced Tuesday.

Under the agreement, Allina Health would become the Upper Midwest Division of Sutter Health, keeping the Allina name, brand and regional headquarters in Minneapolis. Sutter would maintain its headquarters in Northern California. Lisa Shannon would remain president and CEO of Allina, and Warner Thomas would lead the combined system as president and CEO of Sutter.

A more than $2 billion investment in Minnesota and western Wisconsin will be used to establish new ambulatory care locations and expand specialty institutes, and accelerate physician and clinician recruitment, among other things, according to the announcement.

The new health system would have a combined 18,000 physicians and 88,000 employees serving over 5 million patients across three states. The system would include 39 hospitals and more than 400 primary and specialty care sites.

“As one nationally leading, locally committed nonprofit health system, we will be uniquely positioned to be at the forefront of innovation, building upon the expertise of our physicians, advanced practice providers, nurses and team members to chart a new path for healthcare,” Shannon said in the news release announcing the agreement.

Allina has had operating losses over the past four years, The Minnesota Star Tribune reported, noting the Sutter deal is similar to an acquisition but Sutter is not paying for its controlling interest.

“Healthcare organizations across the country are facing complex challenges and a rapidly evolving landscape,” Thomas said in the news release. “As trusted nonprofit health systems, we have a responsibility to fundamentally transform care for patients and communities across the country.”

Executives told the Tribune that Allina patients shouldn’t see near-term charges in their doctors, services or insurance coverage.

Allina and Sutter anticipate closing on the agreement by the end of 2026, pending regulatory approval.