Allina's chief clinical officer, Dr. Penny Wheeler, says Mercy Hospital officials are being extra cautious until they know what caused the fire.
She says two nurses were at the baby's bedside and acted quickly when they saw the spontaneous eruption of flames under the baby's oxygen hood.
"Out of abundance of caution and to reassure families, we have decided to transfer any infant out of Mercy Hospital who requires continuous oxygen therapy," said Wheeler.
The hospital system has assembled a team to investigate the incident and is cooperating with state and local fire officials. Wheeler says she expects Allina's investigation to take three to six months.
The baby, named Maverick, remains in critical but stable condition at Hennepin County Medical Center.