By Charlie Mahler
Northfield Hospital + Clinics plans to bring its proposal to purchase the Allina Health Northfield Clinic to the Northfield City Council’s April 7 meeting for final approval of the $6-million acquisition, NH + C president and CEO Zander Abbot reported to the council Monday.
Abbot presented an acquisition progress report to the council which has final say on the matter. NH + C announced its intention to merge with the clinic in December and spent the intervening weeks focused on due diligence regarding patient care and access as well as financial, legal and operational elements of the purchase.
“The Northfield Hospital and Clinic’s board of directors met for the first time just last week, on February 26, to review this due diligence,” NH + C president and CEO Zander Abbott reported to the council. “The work went very well. We got excellent questions and feedback and the board remains supportive. The board of trustees will meet again on or around March 12 to do a second round of due diligence review, at which point the board of trustees of the hospital will look to propose a motion to recommend to this body that Northfield Hospital and Clinic proceed with purchasing the Allina Northfield Clinic building.”
Abbott has touted the acquisition’s positive impact on health care and health care access in Northfield as well as its strengthening the financial position of the Northfield hospital.
“It’s coming to the City Council, we’re getting updates, because as a municipal hospital if the action involves the sale of real estate then the City Council needs to approve that per our charter,” Northfield Mayor Erica Zweifel explained on the KYMN In the Morning show following Abbot’s report.
Elements of the purchase highlighted in the report included:
- Allina Health being granted a 12-year right of first refusal, should NH + C change its ownership structure as a municipal hospital, although there is a carve-out should NH + C become an independent 501(c)3 nonprofit.
- An assurance from Abbott based on conversations with Rice County officials that the purchase will not affect city tax revenue, with NH + C assuming the tax burden — $223,000 in 2025 — going forward.
The launch of the clinic under NH + C ownership is targeted for September of this year.
Charlie Mahler is a regular contributor to KYMN News. Contact him at news@kymnradio.net
