Sutter Health and Allina Health have signed a letter of intent that would bring the Minneapolis-based health system into Sutter’s nonprofit network, creating a multistate organization spanning California, Minnesota and Wisconsin.

Under the proposed structure, Allina Health would become the Upper Midwest division of the Sacramento, California-based Sutter Health while continuing to operate under the Allina name and maintaining its regional headquarters in Minneapolis. Warner Thomas would remain president and CEO of Sutter Health, while Lisa Shannon would continue as president and CEO of Allina Health within the new division.

The organizations said the combination would expand resources for care delivery, technology development and workforce growth. Plans include more than $2 billion in investments across Minnesota and western Wisconsin, aimed at expanding ambulatory services, specialty care programs and clinician recruitment.
“Healthcare organizations across the country are facing complex challenges and a rapidly evolving landscape,” Thomas said. “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.”

Both systems indicated that digital tools and artificial intelligence would play a role in reducing administrative workload and improving scheduling and patient access. Leaders also highlighted plans to expand clinical research and clinical trials.

If finalized, the combined system would include 39 hospitals and more than 400 primary and specialty care sites. The organization would employ roughly 88,000 staff and work with about 18,000 affiliated physicians, serving more than 5 million patients.

The two health systems plan to conduct due diligence and negotiate final terms before entering a definitive agreement. The organizations expect the transaction to close by the end of 2026, subject to regulatory approval.

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