Hatch dropping investigation following naming of new Allina Health System board

ST. PAUL -- Attorney General Mike Hatch said Friday he is ending his high-profile audit of Allina Health System following the announcement of a new board of directors that includes several people he recommended.

Allina's new group of 21 directors includes 10 holdovers from the board that ran the $2.6 billion-a-year company before it decided to spin off its Medica health maintenance organization into a separate company three weeks ago. Additional physician members will be added, officials say.

Hatch praised the new members and said they ought not be burdened with additional questions arising from his audit.

"It's a new day," Hatch said. "I'm not interested in weighing them down with barnacles from the past."

He said he hopes to release a final report by Labor Day.

The nonprofit company promised the directors -- including the holdovers -- that they will not be held personally liable for damages from any lawsuits challenging the way the health care giant has been managed in the past.

Since beginning his review of Allina and Medica finances in June 2000, Hatch has issued a series of reports questioning the company's spending of millions on consultants and corporate perks as well as its efforts to influence the media.

CEO Gordon Sprenger, however, said none of those examples shows inappropriate corporate conduct.