Allina acquires Crossroads clinics

The acquisition spree continues at Allina Hospitals and Clinics.

Allina is buying Crossroads Medical Centers, which has 10 family physicians in three locations in Chaska, Shakopee and Prior Lake.

Neither party is disclosing financial details.

With rising competitive pressures on small clinic groups, this isn't likely to be the last deal for Allina.

"A lot of the independent groups in the market are reaching out to us," said Allina spokesman David Kanihan. "We are certainly open to talking."

In September, Allina finalized a merger with Aspen Medical Group, which has eight metro area clinics. Even before that, Allina was the biggest hospital and clinic group in the Twin Cities with net operating revenues last year of $2.35 billion.

Small independent clinics face several challenges. Most can't afford to invest in electronic medical records, which are becoming an industry standard. And retail clinics such as Target Clinic are taking away some of their bread-and-butter services.

"We were looking to establish a relationship to help us grow and keep up," said Crossroads' administrator John Rekow.

Crossroads is in the fast-growing southwest metro area. In addition to industrywide pressures, the doctors were worried over the expansion of Ridgeview Medical Center in nearby Waconia, Rekow said. They also wondered about new competitors after the city of Chaska proposed building a medical corridor along Hwy. 312.

For Allina, small primary-care clinics are part of a crucial referral system to its hospitals and specialty clinics. Crossroads' doctors already deliver babies at St. Francis Regional Medical Center in Shakopee, which is jointly owned by Allina, Park Nicollet Health Services and Duluth-based Benedictine Health System.

The deal will close Jan. 1, and the clinics will be called Allina Medical Clinic Crossroads.

Chen May Yee • 612-673-7434