TLDR:
– Cambridge venture capital firm General Catalyst is acquiring Summa Health, a nonprofit health care system in Akron, Ohio.
– General Catalyst aims to reinvent health care by infusing Summa Health with technology and new ideas.
General Catalyst, a venture capital firm based in Cambridge, Massachusetts, has announced its acquisition of Summa Health, a nonprofit health care system in Akron, Ohio. Summa Health is the largest employer in its county, with 7,000 employees and a range of health care facilities. However, the system has been facing financial losses in recent years. General Catalyst managing director Hemant Taneja and former Intermountain Health CEO Marc Harrison believe that the key to reinventing health care lies in implementing innovation, rather than cutting costs.
The duo’s vision for Summa Health is to create a “closed loop system” in which administrators, physicians, and nurses all use new technology and tools to improve the efficiency of care delivery. The closed loop system would also enable the collection of data to identify effective practices and eliminate ineffective ones. This approach aligns with the goal of transforming health care into a proactive system that helps people stay well, rather than simply treating illness.
While specifics of the deal have not been disclosed, General Catalyst plans to invest in Summa Health over several years, rather than a shorter time frame. The success of the acquisition will depend on winning the support of doctors, nurses, and other medical professionals who will be at the forefront of the transformation. Change management and incentivisation will be crucial in getting buy-in from Summa Health employees.
Despite the challenges, General Catalyst’s acquisition of Summa Health has the potential to significantly advance the modernization of health care. The health care industry has historically lagged behind in adopting and utilizing technology, but the application of new technology in one of the world’s largest industries holds great promise for future improvements. If successful, the venture could serve as a model for other health care reinvention efforts.
