In an unconventional move, venture capital firm General Catalyst is set to acquire Summa Health, a nonprofit healthcare system based in Akron, Ohio. The deal, expected to be completed by the end of the year, will see Summa Health become a fully owned subsidiary of General Catalyst’s Health Assurance Transformation Corp (HATCo). General Catalyst aims to transform healthcare through technology and plans to maintain or increase Summa’s current staffing levels in Akron. However, the acquisition has raised both hope and concern among the local community.
General Catalyst envisions a venture capital-owned hospital system that integrates AI and technology into everyday appointments and incentivizes staff to keep patients healthy. The acquisition of Summa Health presents opportunities for technological innovation and improved local delivery of care, but some worry about losing access to healthcare in a for-profit scenario.
Marc Harrison, MD, the CEO of HATCo, is leading the transformation. His departure from Intermountain to helm HATCo has raised questions, with Akron’s mayor planning to press Harrison on whether his plan is a profit play or a longer-term investment in the community.
Residents and local officials have expressed concerns about potential job losses, increased healthcare costs, and a decline in the quality of care. There are worries that the deal could lead to the closure of one of the two major hospital systems in the area, which serves a significant portion of Medicaid patients. The Akron City Council has called for transparency and community engagement before finalizing the sale.
In response to these concerns, Summa Health has defended the acquisition, highlighting HATCo’s focus on investing in technology, innovation, and services to improve local delivery of care. They view the acquisition as a strategic move to stabilize long-term finances and reinvent healthcare delivery and pricing using evolving technology. The sale is also expected to establish a hospital conversion foundation for the Akron community.
The proposed acquisition has sparked a broader conversation about the role of venture capital in healthcare and its impact on community health systems. It represents an opportunity to reinvent how healthcare is used, delivered, and priced by leveraging technological advancements. The outcome of this landmark acquisition will have far-reaching implications for the future of healthcare and could serve as a litmus test for nonprofit hospitals in an uncertain year.
