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Corporation
HEALTHCARE | Medical Facilities & Services / Hospitals
allinahealth.org

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Investments

1

Portfolio Exits

1

Partners & Customers

10

About Allina Health System

Allina Health is dedicated to the prevention and treatment of illness and enhancing the greater health of individuals, families and communities throughout Minnesota and western Wisconsin.

Allina Health System Headquarter Location

The Commons at Midtown Exchange

Minneapolis, Minnesota, 55407,

United States

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Latest Allina Health System News

COVID-19 drove $57.7M loss at Minneapolis-based Fairview Health Services last quarter

Nov 22, 2021

COVID-19 drove $57.7M loss at Minneapolis-based Fairview Health Services last quarter Surge of COVID patients suppressed revenue as staffing costs spiked due to worker retirements, burnout. November 22, 2021 — 2:56pm Fairview Health Services last quarter spent more money replacing staff — burnt out by the pandemic — and brought in less revenue as COVID-19 continues to sap its hospitals' resources. The Minneapolis-based nonprofit, which is one of the state's largest hospital operators, racked up a loss of $57.7 million on $1.6 billion of revenue for the three-month period spanning July through September. And while most hospital systems are dealing with the same public-health crisis, the financial picture varies among them. Fairview saw third quarter staffing shortages due to a surge of early retirements and burnout amidst the pandemic, Hayes Batson, the chief financial officer at Fairview, said in an interview. To fully staff its network of hospitals and clinics, Fairview had to pay more overtime and shift bonuses, Batson said, in addition to offering retention incentives and hiring contract labor. Meanwhile, the highly infectious delta variant of the pandemic virus gained momentum throughout the third quarter, sending more patients sick with COVID-19 to the hospital. "For every additional COVID case, it's one less surgical case," Batson said. "Those surgical cases, in many instances, are high-acuity type situations and there's much higher margin in those than there is in a COVID case." The quarterly figure means year-to-date operating losses at Fairview are rivalling 2020, when many health systems reported weaker financial results as the pandemic disrupted routine health care for many patients. There's some evidence that other large hospital operators in Minnesota have seen some financial recovery this year. In financial results this month, Minneapolis-based Allina Health System reported $107.6 million in operating income through the first nine months, a rebound from a loss of $98.8 million during the same time period in 2020. Mayo Clinic didn't lose money last year — the Rochester-based health system saw operating income of $355 million through the first three quarters of 2020 — but this year's financial results look even stronger. In a financial disclosure this month, Mayo said its operating income for the first nine months of the year is just over $1 billion. But at Fairview, the third quarter results mean the cumulative loss on operations thus far this year is $132.9 million — just shy of last year's operating loss through three quarters of $152.6 million. Batson said he couldn't comment on financial results at other health systems. But he suggested Fairview might be dedicating a higher share of its ICU beds to patients with COVID-19. Citing data from a statewide coordination center , Batson said pandemic patients in mid-November filled about half of the ICU beds at Fairview, versus roughly one-third of ICU beds at many other medical centers across the state. That's potentially a significant difference, Batson said, because it would mean Fairview has relatively less capacity for handling surgical patients that generate more revenue due to differences in "DRGs," the diagnosis-related group coding system that hospital and insurers use to classify patients for billing purposes. "Your ICU beds are your highest revenue and margin generating beds," Batson said. "If they're dedicated to COVID, respiratory DRGs, rather than other better-paying DRGs, your financials are affected." Year-to-date, Fairview has seen nearly $134 million in investment income, which means the health system thus far has a $6.2 million excess of revenue over expenses. To improve operating results, Fairview is creating a three-year plan that's scheduled to be approved by the health system's board of directors in December. "The draft plan seeks to bring Fairview back to profitability over the next three years through organic volume growth, strategic actions and performance improvement plans," Fairview said in a financial statement. Fairview's inpatient admissions through the first nine months of the year are flat compared with last year. Surgeries are up nearly 11% while emergency room visits are up nearly 2%. At Allina, hospital admissions through the first three quarters are up nearly 8%, while surgeries are up 23% and ER visits are up nearly 12%. During the third quarter, Allina posted operating income of $22.2 million on $1.2 billion of revenue. Allina is no longer losing $40 million per week like it was in spring of 2020 when the health system had to shutdown elective procedures to conserve protective equipment and supplies to handle COVID-19, said Ric Magnuson, the chief financial officer. But COVID-19 continues to be a financial challenge for the health system, which also faces staffing challenges, Magnuson said. In response to the growth in pandemic patients, Allina started in mid-September to reschedule and delay some surgeries. "We thought we were headed down again in COVID," Magnuson said. "But unfortunately, starting in September, COVID started to spike up and we are at record levels again." Fairview Health Services is one of the state's largest nonprofit groups with more than 34,000 employees. Under the brand M Health Fairview, the health system operates 80 primary- and specialty-care clinics as well as nine hospitals including University of Minnesota Medical Center in Minneapolis and Fairview Southdale Hospital in Edina. Allina employs more than 28,000 employees and operates more than 90 clinics and 11 hospitals, including Abbott Northwestern in Minneapolis and United in St. Paul. Christopher Snowbeck covers health insurers, including Minnetonka-based UnitedHealth Group, and the business of running hospitals and clinics.

Allina Health System Investments

1 Investments

Allina Health System has made 1 investments. Their latest investment was in Health Catalyst as part of their Corporate Minority on January 1, 2015.

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Allina Health System Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

1/6/2015

Corporate Minority

Health Catalyst

Yes

1

Date

1/6/2015

Round

Corporate Minority

Company

Health Catalyst

Amount

New?

Yes

Co-Investors

Sources

1

Allina Health System Portfolio Exits

1 Portfolio Exit

Allina Health System has 1 portfolio exit. Their latest portfolio exit was Health Catalyst on July 25, 2019.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

7/25/2019

IPO

$99M

17

Date

7/25/2019

Exit

IPO

Companies

Valuation

$99M

Acquirer

Sources

17

Allina Health System Acquisitions

1 Acquisition

Allina Health System acquired 1 company. Their latest acquisition was Apple Valley Medical Clinic on February 05, 2020.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

2/5/2020

$99M

Acquired

1

Date

2/5/2020

Investment Stage

Companies

Valuation

$99M

Total Funding

Note

Acquired

Sources

1

Allina Health System Partners & Customers

10 Partners and customers

Allina Health System has 10 strategic partners and customers. Allina Health System recently partnered with Icertis on August 8, 2021.

Date

Type

Business Partner

Country

News Snippet

Sources

8/16/2021

Vendor

Icertis

United States

Allina Health Selects Icertis To Accelerate Digital Transformation of Contracting

Icertis will enable seamless contract collaboration between procurement and suppliers , between the managed care team and insurance companies , and for all other stakeholders who work with contracts at Allina Health .

1

7/13/2021

Vendor

Cedar

United States

09:00 ET Cedar and Allina Health Announce Partnership to Enhance the Patient Financial Experience

NEW YORK and MINNEAPOLIS , July 13 , 2021 / PRNewswire / -- Allina Health , one of the leading not-for-profit healthcare systems in the Midwest , and Cedar , an innovative healthcare financial technology platform , today announced a key partnership to improve the financial experience for Allina Health patients .

2

4/12/2021

Vendor

HealthPartners

United States

Allina Health and HealthPartners announce new partnership

MINNEAPOLIS -LRB- April 12 , 2021 -RRB- -- Allina Health and HealthPartners today announced a five-year partnership that implements value-based care across both organizations with the goal of providing better outcomes , better access to care and lower premiums for members and patients .

2

2/25/2021

Partner

Surgical Care Affiliates

United States

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10

1/19/2021

Partner

The Wellness Network

United States

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10

Date

8/16/2021

7/13/2021

4/12/2021

2/25/2021

1/19/2021

Type

Vendor

Vendor

Vendor

Partner

Partner

Business Partner

Icertis

Cedar

HealthPartners

Surgical Care Affiliates

The Wellness Network

Country

United States

United States

United States

United States

United States

News Snippet

Allina Health Selects Icertis To Accelerate Digital Transformation of Contracting

Icertis will enable seamless contract collaboration between procurement and suppliers , between the managed care team and insurance companies , and for all other stakeholders who work with contracts at Allina Health .

09:00 ET Cedar and Allina Health Announce Partnership to Enhance the Patient Financial Experience

NEW YORK and MINNEAPOLIS , July 13 , 2021 / PRNewswire / -- Allina Health , one of the leading not-for-profit healthcare systems in the Midwest , and Cedar , an innovative healthcare financial technology platform , today announced a key partnership to improve the financial experience for Allina Health patients .

Allina Health and HealthPartners announce new partnership

MINNEAPOLIS -LRB- April 12 , 2021 -RRB- -- Allina Health and HealthPartners today announced a five-year partnership that implements value-based care across both organizations with the goal of providing better outcomes , better access to care and lower premiums for members and patients .

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Sources

1

2

2

10

10

Allina Health System Team

7 Team Members

Allina Health System has 7 team members, including former Chief Executive Officer, Donald Wegmiller.

Name

Work History

Title

Status

James Ehlen

Founder

Former

Donald Wegmiller

Chief Executive Officer

Former

Steve Hatkin

President

Former

Tom O Connor

President, Senior Vice President

Former

Lori Wightman

Eide Bailly, and Mercy Health System

President

Former

Name

James Ehlen

Donald Wegmiller

Steve Hatkin

Tom O Connor

Lori Wightman

Work History

Eide Bailly, and Mercy Health System

Title

Founder

Chief Executive Officer

President

President, Senior Vice President

President

Status

Former

Former

Former

Former

Former

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