Sutter Health and Allina Health have announced plans to combine and form a 39-hospital nonprofit health system with approximately $26 billion in revenue, spanning California and the Upper Midwest. The organizations have signed a letter of intent under which Allina would join Sutter while retaining its brand and operating as the Upper Midwest Division.
As part of the proposed structure, Sutter has committed $2 billion in investments to expand care access and enhance patient experience across Allina’s Minnesota and western Wisconsin markets. These investments are expected to include new ambulatory and specialty care sites, workforce expansion, and digital health capabilities.
Sutter Health President and CEO Warner 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. 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.”
The combined organization would encompass:
39 hospitals
More than 400 care sites
Over 5 million patients annually
Approximately 88,000 employees and 18,000 aligned physicians
The systems emphasized complementary regional strengths, including Sutter’s proximity to Northern California’s AI and technology ecosystem and Allina’s position within Minnesota’s medtech and engineering hub. Planned initiatives include AI-enabled tools to reduce administrative burden and digital platforms to streamline patient access and scheduling.
The announcement stated, “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.”
Allina Health President and CEO Lisa Shannon added, “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. 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 organizations expect to finalize a definitive agreement in the coming months, with a targeted close before the end of 2026, pending regulatory approvals.
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