Summa Health, an Ohio-based integrated healthcare delivery system, has entered into a definitive agreement with General Catalyst’s Health Assurance Transformation (HATCo) to stabilise and transform the health system.
The agreement outlines HATCo’s terms for the acquisition of Summa Health, involving a $485m purchase price.
Summa Health’s existing cash and purchase price will help in eliminating the health system’s $850m in existing debt and fund a community foundation.
Summa Health president and CEO Cliff Deveny said: “As part of HATCo, Summa Health will be better positioned to build upon our existing strengths and capabilities while also benefiting from new opportunities and technology. This is only the beginning of our long-term journey together.”
HATCo has pledged $350m in capital funding over five years for routine purposes and technology investments.
An additional $200m is allocated for strategic and transformative investments over seven years.
The focus is on creating a proactive, affordable, and equitable community-based healthcare model.
During the stabilisation phase, Summa Health will transition into a for-profit, taxable structure.
The organisations have also started collaborating on a transformation plan, including forming working groups within Summa Health to explore future opportunities.
HATCo co-founder and CEO Marc Harrison said: “Our focus is on creating new and expanded opportunities for Summa Health, the communities it serves, and its talented workforce.
“I am proud of the strong collaboration our teams have demonstrated over the past several months, and we look forward to continuing to work together to develop a plan that optimises operational stability while positioning Summa Health to drive meaningful transformation in the years ahead."
Summa Health will maintain its charity care policy and essential services while focusing on sustainable growth and improved access to care.
Employees, providers, and leadership will transition to the new entity.
Summa Health board of directors chair George Strickler said: “This opportunity with HATCo puts us in a stronger position to navigate headwinds, transform the health system and create a sustainable path forward to better serve our people, our patients and our communities.”
The transaction awaits regulatory review and approval from bodies such as the Ohio Attorney General and the US Federal Trade Commission.
Strickler expressed confidence in the partnership with HATCo, highlighting its potential to strengthen the health system and better serve the community.
