Summa Health - Akron Campus Courtesy: Summa Health
General Catalyst to acquire Summa Healthcare for $485 million
November 12, 2024
by Gus Iversen, Editor in Chief
Summa Health, one of Ohio's largest healthcare systems, has signed a definitive agreement with Health Assurance Transformation LLC (HATCo), a subsidiary of General Catalyst, to be acquired and supported by long-term investments aimed at strengthening healthcare delivery in the Greater Akron region.
The acquisition, valued at $485 million, will allow Summa Health to eliminate $850 million in debt and establish a new community foundation funded by remaining cash after adjustments. The foundation will focus on community health initiatives in Akron and the surrounding areas.
Additionally, HATCo has committed $350 million over five years to enhance Summa Health’s operations and technology infrastructure, with an additional $200 million planned for innovation-focused projects over the next seven years.
“As part of HATCo, Summa Health will be better positioned to build upon our existing strengths and capabilities while also benefiting from new opportunities and technology," said Dr. Cliff Deveny, Summa Health president and CEO. "Our goals are to expand access to care and improve the experience for our patients, providers and staff."
Under the agreement, Summa Health will transition to a for-profit structure, with all current employees and leaders expected to join the new organization. Both Summa and HATCo have emphasized their shared commitment to maintaining essential community services, including charity care policies and community benefit programs.
Marc Harrison, M.D., CEO and co-founder of HATCo, emphasized the collaborative approach taken in developing the transaction. “Our focus is on creating new and expanded opportunities for Summa Health, the communities it serves, and its talented workforce,” Harrison said.
Summa Health’s leadership expressed confidence in HATCo’s commitment to long-term stability and transformation. The partnership includes the creation of working groups within Summa to explore new growth avenues.
The deal is subject to regulatory approval and will be reviewed by the Ohio Attorney General, the Ohio Department of Insurance, the Federal Trade Commission, and other authorities.
The acquisition, valued at $485 million, will allow Summa Health to eliminate $850 million in debt and establish a new community foundation funded by remaining cash after adjustments. The foundation will focus on community health initiatives in Akron and the surrounding areas.
Additionally, HATCo has committed $350 million over five years to enhance Summa Health’s operations and technology infrastructure, with an additional $200 million planned for innovation-focused projects over the next seven years.
“As part of HATCo, Summa Health will be better positioned to build upon our existing strengths and capabilities while also benefiting from new opportunities and technology," said Dr. Cliff Deveny, Summa Health president and CEO. "Our goals are to expand access to care and improve the experience for our patients, providers and staff."
Under the agreement, Summa Health will transition to a for-profit structure, with all current employees and leaders expected to join the new organization. Both Summa and HATCo have emphasized their shared commitment to maintaining essential community services, including charity care policies and community benefit programs.
Marc Harrison, M.D., CEO and co-founder of HATCo, emphasized the collaborative approach taken in developing the transaction. “Our focus is on creating new and expanded opportunities for Summa Health, the communities it serves, and its talented workforce,” Harrison said.
Summa Health’s leadership expressed confidence in HATCo’s commitment to long-term stability and transformation. The partnership includes the creation of working groups within Summa to explore new growth avenues.
The deal is subject to regulatory approval and will be reviewed by the Ohio Attorney General, the Ohio Department of Insurance, the Federal Trade Commission, and other authorities.