Investments and expansions shaping a new era of Minnesota healthcare
Writer: Pablo Marquez
June 2025 — In recent years, Minnesota has experienced a surge in major business investments and expansions in sectors such as healthcare, med-tech, and advanced medical manufacturing. This growth was supported by robust public-private partnerships and strategic state incentives. By building on its healthcare industry strengths, Minnesota is creating thousands of healthcare-related jobs and solidifying its role as a national leader in emerging technologies. These investments are expected to fuel long-term economic momentum and expansions for the local healthcare industry.
Allina Health is undertaking a $596 million expansion at Abbott Northwestern Hospital in Minneapolis, adding a 10-story, 600,000-square-foot building. The new facility will feature 30 operating rooms, four floors of patient rooms, and space designed to accommodate future growth. The project is slated for substantial completion by June 2026.
“There is a shared commitment to serve our community as well as a shared commitment for collaboration amongst the varied healthcare systems,” Lisa Shannon, CEO of Allina Health, told Invest:. My perspective is that our community needs a solid healthcare network to flourish. I believe my colleagues are like-minded and that we are charitable assets within the communities we serve. We want employers to see that they have access to the best care for their workforce, and we want all who seek care in our community to understand the benefit of having accessible, high-quality care in our region.”
In another industry move, Philips Image Guided Therapy, the medtech division of Netherlands-based Philips, is investing $31 million to expand its facility in Plymouth, Minnesota. The expansion will add manufacturing, R&D, and training space, and is expected to create 158 new jobs, building on the current workforce of 300. The project is supported by $3.5 million in state funding to support growth in the high-tech and manufacturing sectors. Philips’ $31 million expansion in Plymouth will include a new medical technology training center expected to host 2,000 visitors annually. Company representatives said the average salary for workers at the facility will exceed $100,000.
“Whether you’re a small business or a global company, Minnesota continues to be one of the best places to start, grow, and expand your business. Philips’ expansion in Plymouth speaks to the talent, resources, and support available to companies looking to grow in Minnesota. This is good news for the community and great news for the state as we continue expanding our footprint as a leader in medical technology,” said Minnesota Governor Tim Walz, as cited by GREATER MSP.
Solventum, the $8.2 billion healthcare company spun off from 3M, is establishing its new headquarters and a research and development facility in Eagan, Minnesota. The company is investing $209 million in the project, which includes property acquisition, major renovations, and new equipment and technology. Supported by $12.78 million in state funding, the initiative will retain over 1,000 jobs in Minnesota and strengthen the state’s healthcare innovation sector.
“Minnesota’s support was instrumental in our decision to reinvest in the Twin Cities area. We look forward to continued growth as a global health care leader and a strong partnership with the state and city of Eagan,” said Bryan Henson, CEO of Solventum, as cited by the Minneapolis/St. Paul Business Journal.
Baxter Healthcare, a medical device company specializing in treatments for kidney disease and other chronic conditions, is investing $41 million to establish a 90,000-square-foot R&D Center of Excellence in Golden Valley, Minnesota. The facility will serve as a key hub focused on kidney care, featuring renovations, new equipment, and advanced machinery. The project is expected to create 100 new jobs and relocate 70 existing positions from Plymouth. It is one of four global centers for Baxter and is supported by $3.2 million in state funding from the Minnesota Investment Fund and Job Creation Fund.
Join us as we discuss reimagining the future of healthcare at the Invest: Minneapolis-St. Paul 2025 Leadership Summit at the Canopy By Hilton on July 10, from 8 a.m. to 12 p.m.
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