How Allina Spends its Money
Allina executives are rewarded handsomely for their cost-cutting and profit-first policies. In 2020, hospital executives and other top employees took home a total of more than $27.5M. [1] While most nonprofits do not compensate their board members, [2] the majority of Allina’s board received $7,500 or more in 2020 despite working, on average, two hours per week.[3]
Excess revenues generated by Allina executives allow them to spend big on new construction projects year after year, with announced projects totaling nearly $300M over the last 10 years. [4] Spending $12M on a new conference center as patient costs skyrocket raises questions about the priorities of Allina executives.[5] What’s more, Allina’s highest paid construction contractor in 2020 [6] has a long record of violations, including serious workplace health & safety and environmental offenses,[7] as well as allegations of bid-rigging. [8]
Where Isn't Allina Spending?
Source: Author’s calculations from 2011 – 2021 Consolidated Audited Financial Statements
Even as Allina executives have made the company more profitable at the expense of patients and workers, the company has given back less and less to the communities it promises to serve. In 2021, Allina recorded its most profitable year on record.[9] Despite this, Allina executives decreased uncompensated care spending by 10.4 percent.[10] One major component of this spending is charity care, or the dollar value of services provided for which payment was never expected and for which the patient is not pursued. Allina executives have decreased these charitable costs as a percentage of expenses year after year.[11]
SOURCES
[1] Allina Health System, Return of Organization Exempt From Income Tax For the 2020 Calendar Year (filed November 10, 2021), https://projects.propublica.org/nonprofits/organizations/363261413/202013189349303636/full.
[2] Economic Research Institute, “Nonprofit Board Members – To Pay or Not to Pay in 2018?” Economic Research Institute (blog), May 8, 2018, https://www.erieri.com/blog/post/nonprofit-board-members-to-pay-or-not-to-pay-in-2018.
[3] Allina Health System, Return of Organization Exempt From Income Tax For the 2020 Calendar Year (filed November 10, 2021), https://projects.propublica.org/nonprofits/organizations/363261413/202013189349303636/full.
[4] Matt M. Johnson, “Hospital Plans More Upgrades,” Finance and Commerce, March 4, 2020, sec. News.
[5] Allina Health System, “Quarterly Financial Disclosure Statement Twelve Months Ended December 31, 2021,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/P11563565-P11207122-P11626573.pdf.
[6] Allina Health System, Return of Organization Exempt From Income Tax For the 2020 Calendar Year (filed November 10, 2021), https://projects.propublica.org/nonprofits/organizations/363261413/202013189349303636/full.
[7] Good Jobs First, “M.A. Mortenson | Violation Tracker,” Good Jobs First, https://violationtracker.goodjobsfirst.org/parent/ma-mortenson.
[8] Colorado Attorney General, “Mortenson Company Agrees to Pay $650,000 to Attorney General’s Office, Build a COVID-19 Related Project in Colorado Convention Center Bid-Rigging Settlement,” Press Release, April 13, 2020, https://coag.gov/press-releases/4-13-20/.
[9] Allina Health System, “Consolidated Financial Statements December 31, 2021 and 2020 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/P11576784-P11217194-P11638063.pdf;
———, “Consolidated Financial Statements December 31, 2020 and 2019 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/P21447100-P21123381-P21534999.pdf;
———, “Consolidated Financial Statements December 31, 2019 and 2018 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES1360401-ES1060020-ES1465801.pdf;
———, “Consolidated Financial Statements December 31, 2018 and 2017 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ER1203174-ER941887-ER1342927.pdf;
———, “Consolidated Financial Statements December 31, 2017 and 2016 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES1120839-ES876446-ES1277719.pdf;
———, “Consolidated Financial Statements December 31, 2016, 2015, and 2014 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES1166025-EP765531-EP1167284.pdf;
———, “Consolidated Financial Statements December 31, 2015 and 2014 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES769139-ES604222-ES1000020.pdf;
———, “Consolidated Financial Statements December 31, 2014, 2013, and 2012 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/EP846903-EP655407-EP1057087.pdf;
———, “Consolidated Financial Statements December 31, 2013 and 2012 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/EA589040-EA460319-EA856338.pdf;
———, “Consolidated Financial Statements December 31, 2012 and 2011 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/EA514446-EA401204-EA798254.pdf;
———, “Consolidated Financial Statements December 31, 2011 and 2010 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ER641211-EP480444-EP880851.pdf.
[10] Allina Health System, “Quarterly Financial Disclosure Statement Twelve Months Ended December 31, 2021,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/P11563565-P11207122-P11626573.pdf.
[11] Allina Health System, “Consolidated Financial Statements December 31, 2021 and 2020 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/P11576784-P11217194-P11638063.pdf.
———, “Consolidated Financial Statements December 31, 2020 and 2019 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/P21447100-P21123381-P21534999.pdf.
———, “Consolidated Financial Statements December 31, 2019 and 2018 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES1360401-ES1060020-ES1465801.pdf.
———, “Consolidated Financial Statements December 31, 2018 and 2017 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ER1203174-ER941887-ER1342927.pdf.
———, “Consolidated Financial Statements December 31, 2017 and 2016 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES1120839-ES876446-ES1277719.pdf.
———, “Consolidated Financial Statements December 31, 2016, 2015, and 2014 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES1166025-EP765531-EP1167284.pdf.
———, “Consolidated Financial Statements December 31, 2015 and 2014 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ES769139-ES604222-ES1000020.pdf.
———, “Consolidated Financial Statements December 31, 2014, 2013, and 2012 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/EP846903-EP655407-EP1057087.pdf.
———, “Consolidated Financial Statements December 31, 2013 and 2012 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/EA589040-EA460319-EA856338.pdf.
———, “Consolidated Financial Statements December 31, 2012 and 2011 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/EA514446-EA401204-EA798254.pdf.
———, “Consolidated Financial Statements December 31, 2011 and 2010 (With Independent Auditors’ Reports Thereon,” Electronic Municipal Market Access (EMMA), https://emma.msrb.org/ER641211-EP480444-EP880851.pdf.