TLDR:
- Venture capital firm HATCo is set to acquire Summa Health by the end of 2024.
- Community members and hospital officials have raised concerns about the potential negative outcomes of the acquisition.
The proposed acquisition of Summa Health by venture capital firm HATCo is expected to be finalized by the end of 2024, according to Summa Health’s President and CEO Dr. Cliff Deveny. The plan would transition the nonprofit hospital system into a for-profit entity. Concerns have been raised by community members and Deveny himself about the possible negative consequences of the acquisition, such as higher costs for patients, staff cuts, and reduced services that may disproportionately affect low-income populations and people of color.
Despite these concerns, Deveny believes that privatizing Summa Health is the best long-term strategy due to the hospital system’s financial challenges. With Summa’s failed merger attempt with Beaumont Health in 2020, Deveny stated that the board is not interested in pursuing another merger with another health system. HATCo has investments in various healthcare businesses but does not currently own any. The acquisition would make Summa Health the first outright business owned by HATCo’s parent company, General Catalyst.
The acquisition process involves finalizing a definitive agreement with HATCo, which would need approval from the Ohio Attorney General and the Ohio Department of Insurance. If approved, HATCo would acquire all assets of Summa Health, including buildings and equipment, while maintaining the current workforce of 8,500 employees. The transition would result in Summa Health becoming a community charity, with a focus on addressing social determinants of health like transportation, housing, and internet access.
