California-based Sutter Health and Minnesota-based Allina Health have signed a definitive agreement to combine into an integrated nonprofit health system, creating a $26 billion organization with 39 hospitals, more than 400 care sites, and approximately 88,000 employees across California, Minnesota, and western Wisconsin.
The organizations said the partnership is intended to expand access to care, accelerate digital and AI-enabled healthcare capabilities, improve affordability, and strengthen clinical integration across markets. As part of the agreement, Sutter Health has committed a $2 billion investment in Allina’s region to support ambulatory growth, technology upgrades, and broader care transformation efforts. Allina would operate as Sutter’s “Upper Midwest Division” while retaining the Allina name, brand identity, and Minneapolis headquarters.
The proposed transaction is now subject to state and federal regulatory review, with both health systems aiming to complete the deal by the end of 2026. Sutter Health CEO Warner Thomas would lead the combined organization, while Allina Health CEO Lisa Shannon would continue overseeing the Upper Midwest operations.
