TLDR: Akron-based Summa Health has announced plans to be acquired by venture capital firm Health Assurance Transformation Corporation (HATCo). The deal would make Summa a for-profit hospital and would result in the creation of a community endowment. HATCo hopes to use Summa as a model for healthcare transformation in the US and abroad. The acquisition is expected to be finalised by mid-summer.
Summa Health, the largest employer and hospital system in Summit County, Ohio, has signed a non-binding letter of intent to be acquired by venture capital firm Health Assurance Transformation Corporation (HATCo). The move would see Summa become a for-profit hospital and would include the creation of a community endowment.
The acquisition is part of a larger plan by HATCo to transform healthcare through technology and to develop a new standard of healthcare investing that focuses on long-term change. HATCo is a new venture capital firm owned by General Catalyst, one of the largest venture capital firms in the US.
Under the deal, Summa’s staffing levels would be maintained or increased, and the hospital system’s headquarters would remain in Akron. Proceeds from the sale would go into an endowment to fund initiatives that support good health, such as housing, transportation, and addiction treatment.
Summa’s name, leadership team, and safety net services, including emergency room treatment and behavioral healthcare, would also be retained. HATCo aims to make Summa a model for healthcare transformation, both in the US and internationally.
This acquisition marks a significant move for Summa, which has been exploring options for a sale or merger for several years. A deal with Michigan-based Beaumont Health fell through in 2020. Summa’s credit rating remains stable, but the hospital system was trending toward an operating loss in 2023.
While the long-term effects of the sale on patients and the community remain unclear, Summa leaders believe the acquisition will bring new technologies and solutions to the healthcare landscape. The deal is expected to be finalised by mid-summer.
The acquisition of Summa Health by HATCo, a venture capital firm, will make Summa a for-profit hospital and establish a community endowment focused on promoting good health.
The deal would maintain or increase Summa’s staffing levels and retain its headquarters in Akron.
HATCo aims to use Summa as a model for healthcare transformation and a blueprint for future investments in the industry.
