Summa Health, based in Akron, Ohio, has agreed to be acquired by venture capital firm General Catalyst Health Assurance Transformation (HATCo) for $485 million. This acquisition will allow Summa Health to eliminate its existing debt of $850 million and transition from a nonprofit to a for-profit organization.
HATCo, established by General Catalyst in 2023, plans to invest $350 million in operational needs and technological advancements over the next five years, as well as $200 million for strategic investments over the next seven years. The transaction is pending regulatory approval, and both Summa Health and HATCo are actively engaged in the regulatory process.
Summa Health has assured stakeholders that it will continue to provide essential services to the community and uphold its charity care policy. The integration of Summa Health's workforce into the new entity is seen as crucial to the success of the transformation efforts.
This acquisition is viewed as a milestone in enhancing healthcare delivery in Ohio and may serve as a model for other healthcare systems.