US-based venture capital company General Catalyst's subsidiary Health Assurance Transformation Corporation (HATCo) has announced a non-binding letter of intent to buy healthcare delivery company Summa Health.

HATCo aims to capitalise on Summa Health's integrated healthcare delivery system to drive healthcare innovation and improve patient outcomes in Greater Akron, Ohio.

The planned acquisition will create a new structure under which Summa Health will become a for-profit entity.

A community foundation will also be established to drive Summa Health’s efforts to invest into social determinants of health to benefit patients in the Greater Akron area.

HATCo CEO Dr Marc Harrison said: “The current national healthcare system is fragmented and creates barriers to care and wellness.

“In partnership with Summa Health, we intend to prove that a model that’s better for patients can also be good for business and create a blueprint for other systems and communities.”

The two companies have entered a due diligence phase, which will allow them to define the details of proposed transaction’s details.

Summa Health will maintain its essential services and investments in Ohio during this period.

The definitive agreement between HATCo and Summa is expected to be finalised in the coming months.

If all necessary regulatory approvals for the deal are given, Summa Health will operate as a wholly owned subsidiary of HATCo.

Summa Health president and CEO Cliff Deveny said: “With HATCo, Summa Health will be able to increase local investment and introduce new resources that allow us to expand access to affordable, quality, coordinated care.

“We’re excited about new opportunities to enhance the patient and provider experience, strengthen our recruitment pipeline, build upon our commitment to medical education and training, and expand the growth of SummaCare to advance health equity and population health across the communities we serve.”

HATCo is a health system company that was recently founded by General Catalyst.