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Allina Health to transfer 2,000 employees to Optum as part of revenue cycle management agreement

by John R. Fischer, Senior Reporter | February 12, 2024
Artificial Intelligence Business Affairs Health IT
Allina Health - Eden Prairie (Photo courtesy of Allina)
About 2,000 employees under Allina Health are scheduled to join the ranks of Optum starting in May, as part of a ten-year revenue cycle management agreement.

Allina Health is a nonprofit hospital providing care for patients in Minnesota and western Wisconsin across 12 hospital campuses, more than 90 clinics, 14 retail pharmacies, and same-day and urgent care centers.

As part of a new “strategic relationship,” Optum, a for-profit organization that manages the health services and technology division of health insurance company UnitedHealth Group, will begin managing the health system’s revenue cycle management operations, to streamline billing and integrate AI and other new technologies and to improve patient and provider experiences. As part of the agreement, 2,000 information system and RCM workers will be transferred from Allina to Optum, reported Twin Cites Business.

“Healthcare is changing rapidly, and the technological needs to support care delivery are increasingly complex. As we look to the future, we need to collaborate on solutions that will support and accelerate our care delivery expertise by bringing size and scale to innovation and technology,” said Allina’s chief information officer and VP Dr. David Ingham in a statement.

Allina sees the deal as building on its existing information services and revenue cycle management operations, and says it will bring to it industry-leading technologies and processes.

No employees will be laid off, according to Allina, and it expects Optum to help it reduce costs and provide it with access to data and analytical capabilities such as AI and automation for back-office work as well as improving care delivery and population health management, according to the Star Tribune. Both organizations will also work together to create care models for improving the entire healthcare system.

Workers were informed about the agreement and employee transfers in late January. Those who will be moved will have retention guarantees for an unspecified amount of time.

The transfers are expected to begin on May 5.

Financial details for the agreement were not disclosed.

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