Sacramento, Calif.-based Sutter Health and Minneapolis-based Allina Health signed a letter of intent March 17 to form a 39-hospital system spanning California, Minnesota and Wisconsin.
Under the proposed deal, Allina Health would become Sutter Health’s Upper Midwest division while retaining its board, brand and Minneapolis headquarters. The transaction is expected to close by the end of 2026, pending regulatory approval.
As the systems look to combine, their financial results diverged in 2025, with Sutter reporting improved operating performance and Allina posting a widening operating loss. Allina attributed its results to several factors, including payer recoupments, increased uncompensated care and rising supply and purchased service expenses.
Here is a look at each system’s financial performance in 2025, based on their reports for the 12 months ended Dec. 31.
Sutter Health
- Operating income: $509 million in 2025, up from $142 million in 2024.
- Operating margin: 2.6%, up from 0.8%.
- Total operating revenue: $19.8 billion, up from $18.2 billion.
- Net patient service revenue: $17.1 billion, up from $15.8 billion.
- Premium revenue: $2.2 billion, up from $2 billion.
- Total operating expenses: $19.3 billion, up from $18.1 billion.
- Salaries and employee benefits: $8.8 billion, up from $8.1 billion.
- Purchased services: $5.6 billion, up from $5.1 billion.
- Supply expenses: $2.7 billion, up from $2.3 billion.
- Net income: $1.9 billion, up from $1 billion.
Allina Health
- Operating loss: $95.4 million in 2025, compared to a $16.6 million loss in 2024.
- Operating margin: -1.6%, down from -0.3%.
- Total operating revenue: $6 billion, up from $5.8 billion.
- Patient service revenue: $5.3 billion, up from $5 billion.
- Other operating revenue: $712.2 million, down from $755.3 million.
- Total operating expenses before restructuring costs: $6.1 billion, up from $5.7 billion.
- Salaries and benefits: $3.6 billion, up from $3.4 billion.
- Supply and service expenses: $1.8 billion, up from $1.6 billion.
- Restructuring expenses: $8.5 million, down from $65.3 million.
- Operating loss before restructuring expenses: $87 million, compared to operating income of $48.6 million.
- Operating margin before restructuring expenses: -1.4%, down from 0.8%.
- Net income: $126.1 million, down from $165.8 million.
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