Mr. Gallagher joined the health system in 2009. He had previously announced plans to leave his position at the end of 2014, amid system layoffs. However, he decided to stay on.
The announcement comes with the health system’s financial report for the third quarter of 2016. While Allina’s revenue rose to $962.61 million in the third quarter, the system also reported an operating loss of $67.74 million. For the first nine months of 2016, the health system recorded an operating loss of $13.66 million.
This has been a tumultuous year for Allina Health, with two strikes called by the Minnesota Nurses Association. A seven-day strike in June and a six-week strike in September and October cost the system $104.88 million in the first nine months of 2016. Health insurance was the major sticking point in the dispute between the nurses and health system.
Mr. Magnuson will assume the CFO position in January 2017. He has previously served as CFO of Duarte, Calif.-based City of Hope, a research and treatment cancer center, as well as CFO of Fletcher Allen Health Care in Burlington, Vt.
More articles on executive moves:
Barstow Community Hospital names Matt Blevins CEO: 5 notes
Beaumont Health taps John Kerndl to serve as CFO
Tenet selects Dr. Octavio Diaz as CMO
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