Name: Doug Watson
Previous title: Interim chief financial officer, Allina Health
New title: CFO, Allina Health
Watson joined Allina in January, following news that longtime CFO Ric Magnuson would depart the organization after 25 years with the company. The two have been working together for months to ensure a smooth transition, according to Wednesday’s announcement.
The executive comes to the Minneapolis-based organization from Sharp Healthcare, where he served as interim executive vice president and system chief financial officer.
Watson has also held executive titles at other health systems across the country, including SVP and chief financial officer of UnityPoint Health; chief financial officer of the Southwest division of CommonSpirit Health; and chief operating officer and chief financial officer at PeaceHealth.
Allina is a major player in the Twin Cities area. The health system captures 31% of admissions in its 11-county service area despite competition from other regional systems including Fairview Health Services and HealthPartners, according to its most recent rating from credit agency Fitch Ratings.
However, the nonprofit provider, like many of its peers, has struggled in recent quarters to remain profitable amid rising labor costs. In fiscal 2023, Allina posted a -7% operating margin, despite implementing expense improvement initiatives in July and bringing in an external consultant to review strategic plans.
Earlier this year, the system also experienced difficulties related to the February Change Healthcare attack that the system said left “a large gap” in the health system’s ability to bill for most hospital services.
While Allina’s operating margins improved for the three months ended March 31, the system remained in the red, posting a -1.4% operating margin and a net loss of $1.8 million.
