Sutter Health to acquire Minnesota’s Allina Health

Minnesota’s Allina Heath announced Tuesday that it’s being acquired by a California-based health care nonprofit.

Minneapolis-based Allina Health said it’s signed a letter of intent to join Sutter Health, which is based in Sacramento.

Under the terms of the proposal, “Allina Health would become the Upper Midwest Division of Sutter Health, maintaining the Allina Health name, brand and regional headquarters in Minneapolis,” the organizations said in a news release.

“Over the coming weeks and months Sutter Health and Allina Health will complete due diligence and finalize the terms and conditions of the proposed transaction prior to entering into a definitive agreement. The organizations anticipate closing by the end of 2026, pending regulatory approval,” the news release said.

The announcement pointed to northern California being “at the forefront of AI and platform development,” and Minnesota’s long history “as the leading hub for med-tech and engineering.”

“The proposed combined system will be uniquely positioned to be a national leader in digital and technological advancements that meaningfully improve patients’ and caregivers’ experiences, while continuing to provide the compassionate care their respective communities have relied on for decades,” the announcement said.

The two health care systems said the agreement, if finalized, would result in an investment of more than $2 billion in its facilities in Minnesota and western Wisconsin, including new locations and improved technology.

“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,” Lisa Shannon, president and chief executive officer of Allina Health, said in the news release. “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.”

Allina Health includes 12 hospitals across Minnesota and western Wisconsin, including Abbott Northwestern in Minneapolis, United Hospital in St. Paul and Mercy Hospital in Coon Rapids. The health system also includes hospitals in Buffalo, Cambridge, New Ulm, Owatonna and Shakopee, along with more than 80 clinics and urgent care centers across the region.

The combined organization, including Sutter Health’s California operations, would have “18,000 aligned physicians and 88,000 team members serving more than five million patients. The system will include 39 hospitals and more than 400 primary and specialty care sites,” the two health systems said.

Tuesday’s announcement is just the latest in several proposed or completed mergers or combinations of health care systems that serve Minnesota.

Last year, South Dakota-based Sanford Health merged with Wisconsin’s Marshfield Clinic Health System. In 2024, Duluth’s St. Luke’s hospital affiliated with Wisconsin-based Aspirus Health.