Minneapolis-based Allina Health said the nonprofit health system’s longstanding chief financial officer Ric Magnuson will depart the organization in April.
Magnuson has served the organization in multiple roles for over 25 years, according to a press release issued Thursday.
The executive’s departure comes as Allina, which operates 12 hospitals and a network of clinics and retail pharmacies, faces financial challenges.
In July, the health system laid off fewer than 350 employees — less than 2% of the health system's workforce at the time — citing unprecedented financial challenges. Allina reported a $122.7 million loss in the second quarter of 2023, compared to a $48.9 million loss in the second quarter of 2022, according to the Star Tribune.
The system also implemented a hiring freeze for nonclinical roles in April 2023, according to financial statements filed with bondholders in August. In total, more than 500 positions were eliminated “to support the organization's efforts to reduce costs.”
However, since then Allina has continued to expand its real estate footprint in a bid to increase revenue-generating care offerings. In September, the health system broke ground on a new building at Abbott Northwestern Hospital in Minneapolis, which will house surgical and critical services at Allina’s flagship campus beginning in 2026, and the health system said it would extend services at its Eden Prairie location in Minnesota.
“I am very confident in Allina’s strategic direction and improving performance, which makes it a good time to move forward with this planned transition,” Magnuson said in a statement about his departure.
Allina plans to launch a nationwide search for Magnuson’s successor and will appoint an interim CFO during his transition, the company said.
