March 19, 2026
Allina Health and Sutter Health have signed a Letter of Intent (LOI) for Allina to join the California-based system, it was announced on March 17.
Upon closing, the organization will have a combined footprint across Northern and Central California, Minnesota and Wisconsin, with 18,000 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, with 12 nationally ranked specialties.
It was reported that Allina and Sutter Health will invest $2 billion in Minnesota and western Wisconsin to build new clinics, and upgrade technology and research capabilities.
As part of the agreement, Allina would become the Upper Midwest Division of Sutter Health, and maintain its name, brand, and regional headquarters in Minneapolis. Sutter Health would maintain its headquarters in Northern California. Warner Thomas would continue to lead the combined system as president and CEO of Sutter Health, with Lisa Shannon remaining president and CEO at Allina.
“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,” Thomas said. “This includes 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.”
“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,” Shannon said.
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.
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