Hatch urged Allina to split into two companies, separating Medica, an HMO with one million members, from Allina, which ran 19 hospitals and 48 clinics. Three days later, Allina announced that it would split off HMO Medica from its hospitals and clinics. The CEOs of Allina and Medica soon departed. The new Allina chairman agreed that the lavish spending and executive perks were wrong for a nonprofit health care system. Allina and Medica then entered into a regulatory agreement with Hatch to curb conflicts of interest and inappropriate expenditures.