Sacramento, Calif. and Minneapolis, March 17, 2026 (GLOBE NEWSWIRE) -- Sutter Health and Allina Health have signed a Letter of Intent (LOI) for Allina Health to join the California-based system, which would create a combined nonprofit health system that will deliver innovative solutions to improve access and affordability and reimagine exceptional care for patients and communities.
With Northern California at the forefront of AI and platform development and Minnesota’s position 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.
Together with our combined innovative capabilities and enabled by an investment of more than $2 billion in Minnesota and western Wisconsin, we will:
- Improve patient access and affordability by establishing new ambulatory care locations and expanding specialty institutes to deliver excellent care to more patients in more settings.
- Help caregivers spend more time with patients and less time on paperwork through AI and digital solutions that reduce administrative burdens.
- Drive high-quality and safe care, including a focus on prevention, to improve the health of the communities we serve.
- Make it easier for patients to get appointments through more convenient scheduling and innovative consumer digital tools.
- Accelerate physician and clinician recruitment to meet growing patient needs across the continuum of care.
- Advance discovery through research, clinical trials and more to directly impact patient care.
- Be one of the best places to work in healthcare in the nation by growing and investing in the strong teams we have today.
In addition, the organizations expect this combination to benefit California patients through smart, sustainable growth in Minnesota and western Wisconsin, complementary capability growth particularly in clinical centers of excellence, access to next-generation med-tech and clinical partnerships and advancements, national relevance to drive the conversation around healthcare delivery and more.
Allina Health would become the Upper Midwest Division of Sutter Health, maintaining the Allina Health 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 Chief Executive Officer of Sutter Health, with Lisa Shannon remaining President and Chief Executive Officer of Allina Health as it becomes Sutter Health’s Upper Midwest 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,” said Thomas. “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. 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.”
“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 Shannon. “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.”
“Our two storied organizations share a common vision for the future and a proud history of caring for people and communities when they need us most,” said Tim Welsh, chair of the Allina Health Board of Directors. “By coming together, we can build upon that legacy, combining our expertise to provide preventive and life-saving care, build nation-leading clinical programs, advance discovery through research and clinical trials, and strengthen access and affordability to better serve our communities now and into the future.”
“Together, with our combined resources and greater reach, we will lead the way for evolving how and where care is delivered,” said Patrick Blake, chair of the Sutter Health Board of Directors. “We aim to reimagine how patients get and stay well, including focusing on proactive chronic disease prevention and management by combining innovation and more accessible ambulatory and virtual care settings to intervene earlier and improve outcomes.”
Upon closing, the organization will have a combined footprint across Northern and Central California, Minnesota and Wisconsin, with 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, with 12 nationally ranked specialties.
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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Attachments
Angie Sheets Sutter Health 916-494-9547 angeline.sheets@sutterhealth.org Jennifer Steingas Allina Health 612-388-1895 jennifer.steingas@allina.com
