Allina Health to be acquired by California-based Sutter Health

A northern California health nonprofit is planning to acquire Allina Health in a deal that was announced Tuesday.

Sutter Health, based in Sacramento, says it's intending to invest more than $2 billion in Minnesota and Wisconsin, all while the Minneapolis-based Allina would retain its president, board of directors and brand. 

If the deal goes through, the combined system would have 18,000 physicians, 88,000 team members at 39 hospitals and 400 care sites across California, Minnesota and Wisconsin. The organization would serve five million patients.

Sutter says it intends to establish ambulatory and specialty care sites in Minnesota, as well as recruit more physicians. The organization added that it also plans to harness artificial intelligence to "reduce administrative burdens."

"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, president and chief executive officer of Allina Health. 

Sutter and Allina said they plan to close the deal by the end of the year, pending regulatory approval.

SEIU Healthcare and the Doctors Council, who represent thousands of health care workers at Allina, said they have "concerns about what this means for employees, our contracts and our pension plans."

"A key issue is ensuring that charitable assets built up by Minnesotans are not diverted out of state to a small handful of executives for personal enrichment. We call on Attorney General Keith Ellison to provide all appropriate inquiry and oversight into this proposed merger and to ensure the interests of Minnesota's workers and patients are protected," SIEU's statement says.

The Minnesota Nurses Association also expressed concern over the announcement.

"The proposed acquisition raises serious concerns about how this could impact union members' contracts and benefits as well as patient care," the Minnesota Nurses Association said in a statement. "We call on hospital leadership to work in good faith with the Minnesota Attorney General's office and to comply with 2023 legislation regulating healthcare mergers and acquisitions. This will ensure full transparency throughout this process and accountability to workers and the public."