Two health systems seek to combine into a 39-hospital system, and one of the largest health systems in the U.S. is exploring the sale of its health plan.
Here are two hospital M&A moves that Becker’s reported during the week of March 16.
1. Renton, Wash.-based Providence is exploring strategic options for its insurance arm, Providence Health Plan, including a potential sale.
Executive Vice President and CFO Greg Hoffman said the move is part of Providence’s broader strategy to focus on delivering high-quality care and maintaining long-term financial strength. Mr. Hoffman said the exploration is not a reflection of the health plan’s performance or workforce.
Providence Health Plan is headquartered in Portland, Ore.
2. Sacramento, Calif.-based Sutter Health and Minneapolis-based Allina Health signed a letter of intent for Allina to join the health system, creating a combined nonprofit organization spanning California, Minnesota and Wisconsin.
The proposed transaction would create a system with 39 hospitals and more than 400 care sites, serving more than 5 million patients. Based on 2025 revenues, the combined organization would generate about $26 billion.
Under the proposed transaction, Allina Health would become Sutter Health’s Upper Midwest Division while retaining a board of directors, brand and regional headquarters in Minneapolis, the organizations said. The agreement is akin to a member substitution, though the final structure will be defined in a definitive agreement and reviewed by regulators. Sutter Health would maintain its headquarters in Northern California. Warner Thomas would continue to lead the combined system as president and CEO of Sutter Health, with Lisa Shannon remaining president and CEO of Allina Health as it becomes Sutter Health’s Upper Midwest Division.
The transaction is expected to close by the end of 2026, pending regulatory approval.
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