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Allina Health, one of the largest health care providers in Minnesota, is being acquired by California-based Sutter Health, the health systems announced on Tuesday.
Although Allina will retain its name, board of directors, and regional headquarters in Minneapolis, the nonprofit will come under the leadership of Sutter President and CEO Warner Thomas.
The acquisition announcement comes as 600 Allina doctors, physician assistants, and nurse practitioners represented by Doctors Council – SEIU continue negotiating their first contract since forming a union in October 2023. Union members have authorized multiple strikes, including a recent vote approving an open-ended unfair labor practices strike, due to ongoing frustrations at the bargaining table.
Last year, Allina closed four clinics around the metro area and shuttered its birth center in Faribault, consolidating obstetric care services in southern Minnesota to Owatonna Hospital.
In their announcement, Sutter’s leadership pledged to invest $2 billion in Allina to enhance outpatient care access, adopt AI tools and other technologies to streamline processes, and hire more health care professionals.
"We are incredibly excited for the opportunity to harness the collective strength of our two mission-driven organizations to make a difference in the lives of our patients, communities and care teams," said Lisa Shannon, Allina’s president and CEO. "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."
The two organizations have signed a letter of intent and expect to finalize the deal by the end of 2026, pending completion of Sutter’s due diligence and absence of any obstacles.
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