Union blasts decision by Allina Health to close four medical clinics

The Minneapolis-based health system has scheduled clinic shutdowns for Nov. 1 including medical offices in Inver Grove Heights, Maplewood and Oakdale.

The Minnesota Star Tribune
July 31, 2025 at 9:26PM
Allina Health is closing its medical clinic in the Medical Arts Building on Nicollet Mall in downtown Minneapolis, and three other clinics in suburban locations. (Christopher Snowbeck/The Minnesota Star Tribune)

Union officials reacted with alarm as Allina Health announced it would close three suburban medical clinics plus one on Nicollet Mall in downtown Minneapolis.

The Minneapolis-based health system said the closures are driven by efficiency concerns, since Allina has underutilized space across its network of more than 60 primary care clinics. Unionized doctors at Allina blasted the decision, saying some patients will struggle to find care elsewhere.

The closures are scheduled for Nov. 1 at the Nicollet Mall location plus at clinics in the east metro suburbs Inver Grove Heights, Maplewood and Oakdale. Robbinsdale-based North Memorial announced plans in June to close its clinic on Nicollet Mall in Minneapolis this summer.

Allina says patient preferences are evolving beyond brick-and-mortar clinics. The health system’s statement also cited financial challenges that are hitting other nonprofit hospital operators, as well.

“We will help patients transition their care, ensuring the change is as seamless as possible, and will be contacting patients with provider availability, new clinic locations and additional updates,” Allina said in a statement to the Minnesota Star Tribune.

Doctors Council SEIU, which represents about 650 primary care and urgent care physicians, pointed to service pullbacks by Allina in recent years across its Mercy Hospital campuses in Anoka and some services at hospitals in Cambridge and Hastings.

“By closing clinics, Allina is again choosing to cut off access to care for patients,” the group said Thursday in a statement.

The union says the closures will impact two pediatricians and two pediatric nurse practitioners. The health system currently has job openings for just two of them, however, prompting Doctors Council SEIU to estimate a problem with access to care for more than 1,000 kids.

Allina questioned the figures, however, and disputed the idea of disruption, considering the nearby supply of alternate health care providers with room for patients.

“Decisions to close a clinic are not taken lightly,” Allina said in a statement. “We carefully consider community access and proximity to other Allina Health clinic locations.”

Allina says the closures will impact no more than 150 workers. Employees will receive transition resources, and can apply for other positions.

In addition to clinics in Minnesota and western Wisconsin, Allina runs Abbott Northwestern Hospital in Minneapolis and United Hospital in St. Paul.

It ranks eighth in size among all Minnesota employers, with an in-state workforce exceeding 21,000.

In 2023, Allina reported its biggest-ever annual loss on operations, but saw significant improvement in financial performance last year. The health system’s performance was driven during 2024 in part by selling a large chunk of its lab business to New Jersey-based Quest Diagnostics for about $230 million.

S&P Global Ratings issued a May report lowering its financial outlook on Allina’s debt that cited “continuing operating losses, which are expected to persist through fiscal 2025, although at a lower level.”

about the writer

about the writer

Christopher Snowbeck

Reporter

Christopher Snowbeck covers health insurers, including Minnetonka-based UnitedHealth Group, and the business of running hospitals and clinics.

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