TLDR:

• Venture capital firm General Catalyst is set to acquire nonprofit system Summa Health, under a non-binding letter of intent signed by both parties.
• General Catalyst’s recently launched company, Health Assurance Transformation Corp. (HATCo), will acquire Summa Health and make it a wholly owned subsidiary.

Venture capital firm General Catalyst is acquiring nonprofit health system Summa Health. The acquisition will be made through General Catalyst’s recently launched company, Health Assurance Transformation Corp. (HATCo), and will make Summa Health a wholly owned subsidiary. The deal is expected to close before the end of 2024, pending regulatory approvals.

HATCo and Summa Health aim to transform the health system space by making health systems more profitable and innovative. They believe that by doing so, they will be better equipped to serve their communities with greater impact. The focus will be on near-term technology innovation and patient benefit, with the goal of driving sustainable, long-term transformation to value-based care and creating new revenue streams.

Summa Health is one of Ohio’s largest integrated healthcare delivery systems and employs more than 8,000 people. Under the acquisition, Summa Health will become a for-profit entity, but HATCo will continue the system’s existing charity care commitment. The transaction will also create a community foundation funded using the upfront capital from the deal.

General Catalyst’s acquisition of Summa Health comes after the launch of HATCo in October, which aims to help partner health systems shift to value-based care and adopt digital health technologies. HATCo plans to leverage General Catalyst’s health system partners and its portfolio of digital health companies to fuel transformation within its health system partners.