TLDR
- VC firm HATCo set to acquire Summa Health by the end of 2024.
- Summa Health will become a for-profit hospital system under the acquisition plan.
Summa Health’s President and CEO Dr. Cliff Deveny confirmed that the venture capital firm Health Assurance Transformation Corporation (HATCo) is on track to acquire Summa Health by the end of 2024. This acquisition plan, announced in January, will transition the nonprofit Summa Health into a for-profit hospital system. Concerns have been raised by community members and Deveny himself about potential negative outcomes, such as rising costs for patients, reduced staff, and cut services that benefit low-income populations and people of color. Despite these concerns, Deveny believes the acquisition is the best option for Summa Health, which has been facing rising costs. After a failed merger attempt with Beaumont Health in 2020, the board of Summa Health decided against pursuing another merger and opted for the acquisition by HATCo. This acquisition would make Summa Health the first outright business owned by General Catalyst, HATCo’s parent company. A unique aspect of this acquisition is its focus on developing technologies and solutions that can be applied to other hospitals and health systems in the United States. The definitive agreement with HATCo is being finalized, pending approval from the Ohio Attorney General and the Ohio Department of Insurance. If approved, the acquisition will proceed, involving the purchase of buildings and equipment, hiring all 8,500 staff, and transitioning Summa Health into a community charity with a focus on social determinants of health.
