Union blasts decision by Allina Health to close four medical clinics

Allina Health plans to close four medical clinics, including one on Nicollet Mall in Minneapolis, effective November 1, due to efficiency concerns and underutilized space. Unionized doctors criticized the closures, arguing they will negatively impact patient access, particularly for over 1,000 children who may struggle to find care. Allina Health defended its decision, claiming that patient preferences are shifting away from physical clinics and that other healthcare providers are available nearby. The closures are expected to affect about 150 employees, who will receive support and can apply for other positions within the organization. Financial challenges have plagued nonprofit hospital operators, and Allina reported its largest operational loss in 2023.

However, the health system saw a turnaround in 2024, aided by a $230 million sale of its lab business to Quest Diagnostics. S&P Global Ratings also lowered its financial outlook on Allina’s debt, citing ongoing operating losses expected to continue through fiscal 2025. The union emphasized that the closures reflect a troubling trend of service reductions impacting community healthcare access.