Sutter Health to scoop up Allina Health, form new $26B nonprofit health system
California-based nonprofit Sutter Health has acquired Allina Health, another nonprofit health system, located in Minnesota. Announced on Wednesday, the merger—if finalized—would expand Sutter’s borders and lead to the creation of a new, unified $26 billion not-for-profit healthcare delivery network.
For now, the two parties confirmed they signed a “Letter of Intent,” the first step toward a full merger or acquisition. In this case, it appears to be the latter, as Sutter confirmed that Allina would become its “Upper Midwest division,” despite “maintaining the Allina Health name, brand and regional headquarters in Minneapolis.”
In a press release issued by the two organizations, it was also confirmed that President and CEO of Sutter Health, Warner Thomas, would take over the same role in the new combined health system, while current President and CEO of Allina Health, Lisa Shannon, would lead the new division.
“Healthcare organizations across the country are facing complex challenges and a rapidly evolving landscape. As trusted nonprofit health systems, we have a responsibility to fundamentally transform care for patients and communities across the country,” Thomas said in the announcement. “When Allina Health joins Sutter Health, we look forward to making significant investments that improve care access and patient experience in Minnesota and western Wisconsin communities.”
The two parties said details are still being worked out, and over the coming “weeks and months” they will finalize details of the merger.
For now, financial terms have not been disclosed.
Thomas confirmed Sutter will be investing in its new division by establishing “new ambulatory and specialty care sites to fill care gaps and meet growing community needs, as well as recruiting more physicians and enhancing AI and digital health capabilities.”
“Building on our complementary strengths and combined expertise, we will build a healthcare innovation engine that accelerates how ideas move from development and design into improving the health of patients and communities,” he added.
Caring for 5 million Americans
Once finalized, Sutter—which operates in Sacramento and the San Francisco Bay area—will expand its reach across the state, then into Minnesota and Wisconsin under the Allina Health branding.
The new health system will include “39 hospitals and more than 400 primary and specialty care sites, with 12 nationally ranked specialties,” the two nonprofits confirmed. In total, it’s expected to serve the healthcare needs of more than 5 million patients.
It will also be home to “18,000 aligned physicians and 88,000 team members,” Sutter and Allina confirmed.
It remains to be seen if a deal can be reached that satisfies both health systems and regulators.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.