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Allina sells home health care businesses

Associated Press

MINNEAPOLIS -- Allina Hospitals &; Clinics has sold its home health care businesses to Intrepid USA Healthcare Services of Edina.

The deal, which was confirmed by both companies Tuesday, furthers the disintegration of Minneapolis-based Allina, which was created in 1994 as an integrated system of a wide variety of health care services.

Terms of the transaction are being kept confidential, according to an Allina official. It includes Allina Home Health and Allina Health &; Caring, which offer home health care services to patients who need assistance.

The privately held Intrepid took over the companies this week.

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Todd Garamella, Intrepid's chief executive officer, said the 255 employees of the Allina business would keep their jobs.

Until last year, the Allina system included Medica health plans, which have 1 million members.

But an investigation by Minnesota Attorney General Mike Hatch and a report commissioned by the company determined the system was not benefiting from integration.

In 2001, Allina Home Health Services lost $6.6 million.

Earlier this year, Allina decided to sell subsidiaries that were not centered on hospital and clinic care, including the home health care businesses.

"It is much clearer with the separation from Medica that we are really focusing on patient care delivered in hospitals and clinics," said Marv Dehne, an executive in Allina's leadership group.

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