>> CATHY: GOOD EVENING, AND WELCOME TO "ALMANAC."

HERE'S A PEEK AT WHAT'S COMING UP IN THE NEXT HOUR.

OUR ALL-STAR WEATHER DUO, MARK SEELEY AND PAUL DOUGLAS, ARE HERE.

KAOMI LEE DIVES INTO THE COMPLICATED AND CONTENTIOUS DEBATE OVER DATA CENTERS.

WE'LL LOOK AT THE LATEST FEDERAL JUDGE RULING ON TEMPORARY PROTECTED STATUS AND SOMALI IMMIGRANTS.

>> ERIC: WE START TONIGHT WITH BIG NEWS FROM THE HEALTHCARE SECTOR.

EARLIER THIS WEEK A NORTHERN CALIFORNIA HEALTH SYSTEM ANNOUNCED IT WILL BE ACQUIRING MINNEAPOLIS-BASED ALLINA HEALTH, ONE OF MINNESOTA'S LARGEST NON-PROFIT HEALTH CARE SYSTEMS.

THE DEAL, PENDING REGULATORY APPROVAL, COULD CLOSE BY THE END OF THIS YEAR.

CHRISTOPHER SNOWBECK COVERS HEALTHCARE FOR THE "STAR TRIBUNE," AND HE'S BEEN TRACKING THE DETAILS ALL WEEK.

WELCOME BACK.

WHAT LED TO THIS ACQUISITION AND IS IT PART OF A NATIONAL TREND?

>> YEAH, I MEAN, WELL, TREND NUMBERS ARE A LITTLE CHOPPY.

>> ric: OKAY.

>> THE NUMBERS THEMSELVES HAVE COMPLETED DEALS ACTUALLY WERE DOWN LAST EAR.

STARTING TO PICK UP AT THE END OF THE YEAR.

THERE'S A LOT OF TALK.

AND I THINK PART OF THE REASON THERE'S A LOT OF TALK, I'M TOLD, IS THE MEDICAID CUTS THAT ARE COMING, THERE'S PRESSURE ON -- THERE'S CONCERNS ABOUT MEDICARE SPENDING AS WELL, AND THEN JUST NEVER-ENDING PRESSURE ON COMMERCIAL INSURANCE RATES.

SO I THINK THERE'S A SENSE THAT NOW IS A TIME THAT HOSPITALS AND HEALTH SYSTEMS ARE LOOKING TO DO DEALS TO SEE IF IT MAKE SENSE TO CONTROL COSTS, BECOME MORE SUSTAINABLE.

>> Cathy: ALLINA WAS HAVING SOME FINANCIAL TROUBLE, TOO, RIGHT?

>> A DEGREE.

AND THAT'S A DIFFICULT THING TO KIND OF SORT OUT BECAUSE IT COMES AT A TIME WHEN WE'RE HEARING A LOT OF CONCERNS ABOUT HCMC.

HCMC IS MUCH SMALLER, YOU KNOW, IT'S ONE SMALLER.

ALLINA IS 12 HOSPITAL CAMPUSES.

ALLINA HAS HAD SOME OPERATING LOSSES OVER THE LAST DECADE, FOR SURE.

ON THE OTHER SIDE OF IT, THEY HAVE A LOT OF INVESTMENT INCOME, AND, SO, INVESTMENT INCOME, YOU KNOW, OFFSETS AT TIMES.

>> Cathy: WILL THERE BE MONEY TO CHANGE HANDS BECAUSE BOTH ARE NONPROFIT FIRMS.

>> RIGHT.

THEY WILL NOT BE CHANGING HANDS.

THE AND, SO, ACQUIRE IS ONE OF -- IT'S SORT OF A DIFFICULT TERM ON THIS.

BECAUSE THE MEMBER INTEREST IS BEING OBTAINED OR ACQUIRED, BUT THERE'S NO PRICE TAG.

>> Eric: HEALTHCARE COSTS ABOUT TO GO UP HERE IN MINNESOTA?

>> DEPENDS WHO YOU TALK TO.

YOU KNOW, ALLINA AND SUTTER SAY THAT THIS DEAL WILL CREATE AN ABILITY TO INVEST $2 BILLION N MINNESOTA AND WESTERN WISCONSIN.

AND CONTROL COSTS AND BECOME MORE EFFICIENT.

SO THAT'S THE TALK, THAT'S THE PROMOTION OF IT.

>> Eric: THE UNIONS AREN'T FIRED UP.

>> UNIONS ARE NOT EXCITED ABOUT IT.

AND THE ECONOMISTS ARE SKEPTICAL.

SO THERE'S LONGSTANDING QUESTIONS ABOUT, YOU KNOW, CONSOLIDATION.

WELL, NOT QUESTIONS IN THE MINDS OF THE ECONOMISTS.

THEY THINK IT'S QUITE CLEAR THAT CONSOLIDATION DRIVES UP COSTS.

AND SUTTER HAS HAD SORT OF A TRACK RECORD IN ITS OWN MARKET FACING A LOT OF LITIGATION FROM EMPLOYERS AND UNIONS ABOUT, YOU KNOW, WAS THERE ANTI-COMPETITIVE BEHAVIOR TO DRIVE UP PRICES IN NORTHERN CALIFORNIA.

A BIG, BIG STORY GOING BACK TO 2014.

>> Cathy: SO THIS STILL HAS TO BE APPROVED BY REGULATORS LIKE THE ATTORNEY GENERAL, RIGHT?

SO I WONDER, IVEN WHAT YOU JUST SAID ABOUT SUTTER, I WONDER HOW THAT MAY CLOUD, IF THAT'S THE RIGHT WORD TO USE, THIS DEAL GOING FORWARD.

>> YEAH.

I WOULD ASSUME THAT'S FRONT AND CENTER IN WHAT KEITH ELLISON'S OFFICE WILL BE LOOKING AT.

I MEAN, I THINK THE WAY THE STATUTE'S WRITTEN IS THEY DETERMINE WHETHER A DEAL IS IN THE PUBLIC INTEREST.

IF THEY DETERMINE IT'S NOT IN THE PUBLIC INTEREST OR HAVE CONCERNS, THEY CAN GO TO COURT ON IT.

SO I THINK THAT'S CENTRAL.

>> Cathy: I WONDER WHAT OTHER HEALTHCARE SYSTEMS, WHEN THEY LOOK AT THIS, I WONDER IF THEY SAY IF THIS IS JUST -- IF THIS MERGER GOES THROUGH IT WOULD JUST BE TOO BIG FOR THE STATE OF MINNESOTA, GIVEN, LIKE, SAY, CENTRACARE, ASPIRUS, THE OTHER SYSTEMS IN THE STATE.

>> YEAH, IT'S A GOOD QUESTION.

AND I HAVE HEARD A LOT OF DIFFERENT THINGS THIS WEEK.

I HAVE HEARD SOME SUGGEST THAT IT WILL PUT PRESSURE ON OTHERS TO GET BIGGER.

BECAUSE SUTTER, YOU KNOW, SUTTER, DEPENDING ON HOW YOU MEASURE IT, TWO TO THREE TIMES THE SIZE OF ALLINA.

YOU KNOW, ALLINA RIGHT NOW IS RIGHT THERE AMONG THE BIG THREE BASICALLY.

>> Eric: WILL SOMEBODY COME IN FROM CALIFORNIA TO RUN ALLINA?

>> WE'RE TOLD NO.

WE'RE TOLD THAT OCAL MANAGEMENT, LISA SHANNON CONTINUES AS CEO.

WE'RE TOLD THE ALLINA BRAND STICKS AROUND, THAT ALLINA BECOMES, I BELIEVE, THE UPPER MIDWEST DIVISION OF SUTTER HEALTH.

WHICH, AGAIN, IS PART OF THE LANGUAGE PROBLEM, LIKE MERGER, ACQUISITION.

YOU KNOW, ACQUISITION -- THERE'S A DEGREE OF INDEPENDENCE, IT SOUNDS LIKE FOR THE LOCAL OPERATION, BUT, YOU KNOW, YOU KIND OF HAVE TO SEE WHAT COMES.

>> Eric: SURE.

WE REALLY APPRECIATE YOUR