On Tuesday, March 3, President and CEO of Northfield Hospitals + Clinics Zander Abbott gave an update to Northfield City Council on the pending acquisition of the Allina Health Northfield Clinic. Northfield Hospitals + Clinics signed a letter of intent to purchase the Allina Clinic for $6 million. The Northfield Hospitals + Clinics board of directors met on Feb. 26 to review the first round of due diligence and will meet again on March 12 for further review.
Abbott reported to the council that the board has given positive feedback and remains supportive of continuing the due diligence review process. At the meeting, Abbott stated that this acquisition will have a “significant positive impact on care and access to care in Northfield” and “unite healthcare in our community.”
A 12-year right of first refusal will go to Allina if the city council wants to restructure the hospital and clinics systems, which gives them first opportunity to purchase the facility if available. The Northfield City Council charter requires Northfield Hospitals + Clinics to seek council approval for this purchase, as it involves the sale of real estate and a municipal hospital. The city and school taxes will not be affected by this partnership; the hospital will assume the tax burden — $223,000 in 2025 — moving forward.
After the presentation, Council Member Brad Ness asked Abbott, “When will you get your financial numbers on the success of this?” Abbott said the accounting firm CliftonLarsonAllen (CLA) has reviewed their financials and calculated a number that will allow them to return to a positive operating position.
Northfield Hospitals + Clinics are dedicated to providing Allina employees with competitive offers and making the transition as smooth as possible. According to Abbott’s report to City Council, the partnership and sale will allow Northfield Hospitals + Clinics to “remain financially strong and independent into the future.”
On April 7, Abbott plans to return to the council to request a motion regarding the approval of the sale of the Allina Clinic to Northfield Hospitals + Clinics. Abbott and his team are “confident that our team has the ability to launch this clinic” and expect to reopen in September 2026.
