TLDR: Nonprofit hospital system Summa Health in Akron has been acquired by private venture capital firm HATCo, marking the hospital system’s transition to a for-profit company. The acquisition was initiated by HATCo and approved by Summa’s board. Both parties will enter a due diligence period to finalize the details of the transaction. However, studies have shown that private equity acquisitions of nonprofit hospitals can lead to increased costs for patients, reduced staff, and reduced services for low-income populations and communities of color. Summa Health has emphasized that it will maintain its essential services and focus on growth and enhanced access to care.
Key points:
- Nonprofit hospital system Summa Health is being acquired by private venture capital firm HATCo
- The acquisition was initiated by HATCo and approved by Summa’s board
- Due diligence will be conducted to solidify the details of the transaction
- Private equity acquisitions of nonprofit hospitals have been shown to have negative impacts, including increased costs for patients and reduced services for vulnerable populations
- Summa Health intends to maintain its essential services and focus on growth and enhanced access to care
