TLDR:
- Venture capital firm General Catalyst has announced plans to acquire Ohio-based nonprofit health system Summa Health and reestablish it as a for-profit organization.
- The move is part of General Catalyst’s strategy to use a health system as a proving ground for technology developed by its portfolio companies.
- The health system, which includes an insurance plan, will be operated by a separate company called the Health Assurance Transformation Corporation (HATCo).
The venture capital firm General Catalyst has agreed to purchase nonprofit health system Summa Health, based in Ohio, and transform it into a for-profit organization. The move is part of General Catalyst’s plan to use a health system as a testing ground for the technology developed by its portfolio companies. As health systems are often hesitant to adopt new products, General Catalyst hopes to demonstrate the potential benefits of its technology within a real-world healthcare environment. The health system will be operated by a separate company called the Health Assurance Transformation Corporation (HATCo), which was spun out by General Catalyst. Once the deal has received regulatory approval, Summa Health and HATCo will jointly decide which technologies to deploy within the health system.
