In a press release, Sutter Health announced that Allina Health would become the Upper Midwest Division of Sutter Health, keeping the Allina Health name, brand, and regional headquarters in Minneapolis. Sutter Health would continue to have its headquarters in Northern California. “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.”

Sutter is also investing $2 billion to improve access to care and enhance patient experience in the Minnesota and western Wisconsin markets.

Additionally, the news release stated that the organizations expect this combination to benefit California patients through smart, sustainable growth in Minnesota and western Wisconsin, along with complementary capability development—particularly in clinical centers of excellence—access to next-generation med-tech and clinical partnerships, advancements, and increased national relevance to help shape the conversation around healthcare delivery and more.

Warner Thomas will continue to lead the combined system as President and CEO of Sutter Health, while Lisa Shannon remains President and CEO of Allina Health as it transitions into Sutter Health’s Upper Midwest Division.

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, according to the news release. The system will include 39 hospitals and over 400 primary and specialty care sites, with 12 nationally ranked specialties.

“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,” Thomas said in a statement.

“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,” Shannon remarked in a statement.