General Catalyst's Health Assurance Transformation Corporation (HATCo) has acquired Summa Health for $485 million. This acquisition will help eliminate $850 million in debt and stabilize Summa Health's financial health. The remaining cash will be used to establish a community foundation dedicated to improving local health outcomes.
HATCo has committed to investing $350 million in capital funding over the first five years and an additional $200 million in strategic investments over the first seven years. The CEO of Summa Health is optimistic about the acquisition and believes it will provide new opportunities and technologies. Summa Health will become a wholly owned subsidiary of HATCo, ending its nonprofit status.
Both organizations are undergoing regulatory review and approval for the acquisition. The partnership aims to create a more proactive, affordable, and equitable healthcare system. Summa Health's financial performance has been under scrutiny, and the acquisition is seen as a crucial step in stabilizing and growing the health system.