Summa Health and General Catalyst's HATCo announce plans for acquisition that will transform the future of healthcare
Akron, Ohio-based Summa Health and General Catalyst's Health Assurance Transformation Corporation (HATCo) announced today that the two organizations have signed a non-binding Letter of Intent outlining HATCo's planned acquisition of Summa Health. This strategic alignment marks the beginning of a long-term, transformational journey to create a new, more proactive, affordable and equitable system of community-based, lifelong healthcare.
HATCo is eager to work with Summa Health to advance healthcare innovation based on the strength of Summa Health's large, integrated healthcare delivery system and its proven track record in leading meaningful changes to care delivery. As part of HATCo, Summa Health will build upon its existing strengths and capabilities and create new opportunities to leverage innovative technology that will improve the health of communities across the Greater Akron region.
"This new structure will better serve our communities clinically, economically and socially. 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," said Cliff Deveny, M.D., Summa Health President and CEO. "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."
Summa Health's leadership team will work closely with HATCo, including Dr. Marc Harrison, HATCo CEO and Hemant Taneja, General Catalyst CEO, to leverage their collaborative, complementary expertise in healthcare and health systems to plan the transformation journey. HATCo's investment into Summa Health will drive not only near-term benefit to the organization and the patients it serves but also sustainable, long-term transformation through a true shift to value-based care.
"HATCo is grounded in the belief that by making health systems more profitable, vibrant and innovative, they will be better equipped to serve everyone in their communities with greater impact. We are thrilled to partner with Summa Health to bring this vision to life," said Marc Harrison, M.D., co-founder and CEO of HATCo. "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."
Within the new structure, Summa Health will become a for-profit organization and HATCo and Summa Health will maintain the health system's commitment to charity care. In addition, as a result of the transaction, a community foundation will be created that advances Summa Health's mission through increased, focused investment into social determinants of health that benefits the entire Greater Akron area. The health system delivered $210.1 million in community benefit to area residents in 2022 and is deeply committed to continuing this long-standing work to improve the health of its region.
"Our shared vision is to create a replicable healthcare model that marks a true and meaningful shift from a ?sick care' system to a resilient, proactive model of health assurance," said Hemant Taneja, CEO of General Catalyst, and founder and chairman of HATCo. "By doing so, we will help people stay well, bend the cost curve through innovation and make quality care more affordable and accessible. I couldn't be more excited to collaborate and execute on that vision with Summa Health and HATCo. We aim to improve the health and wellbeing of the greater Akron community, create a standard for the health system of the future, and inspire communities across America to adopt this vision."
"This alliance provides Summa Health with comprehensive opportunities to grow our organization in ways we can't achieve alone. Many other health systems are navigating the very same challenges we must transcend," said George Strickler, Chair of Summa Health's Board of Directors. "We are excited about this opportunity to work hand-in-hand with HATCo to increase investment in Summa Health and our communities and drive meaningful, transformative change that will benefit the entire healthcare industry."
"From a nursing perspective, I?m very excited about the potential to shape the future of nursing care through this relationship," added Penelope Gorsuch, DNP, RN, NEA-BC-FACHE, Summa Health Senior Vice President and Chief Nursing Officer. "As we look to continue to extend our work on evidenced-based practices across Summa and beyond, our shared vision with HATCo provides us with unique opportunities to enhance and grow our focus on innovative nursing models."
HATCo and Summa Health are now entering a due diligence period during which they will work together to further evaluate and define details of the proposed relationship, while carefully reviewing information from both organizations before finalizing a definitive agreement. Summa Health will continue to provide the same essential services, current and planned commitments will proceed uninterrupted, and the organization will continue to invest in Ohio employees and initiatives.
The two organizations anticipate finalizing a definitive agreement in the next several months. Following receipt of required regulatory approvals and transaction closing, Summa Health will become a wholly owned subsidiary of HATCo and continue its focus on growth and enhanced access to care.
To learn more about this strategic partnership, please visit www.SummaHealth.org/Future.
About Summa Health
Summa Health is one of the largest integrated healthcare delivery systems in Ohio. Encompassing a network of hospitals, community medical centers, a health plan, an accountable care organization, a multi-specialty physician organization, medical education, research and the Summa Health Foundation, we are nationally renowned for excellence in patient care and for exceptional approaches to healthcare delivery. Summa Health's clinical services are consistently recognized by the American Nurses Credentialing Center (Magnet status), The Joint Commission, American Hospital Association, U.S. News and World Report, Healthgrades, Thomson Reuters and The Leapfrog Group.
About HATCo
Health Assurance Transformation Corporation (HATCo) was founded by General Catalyst to operationalize the promise of Health Assurance, and to demonstrate the economic and human benefits that result from collaboration and responsible innovation. The HATCo platform is designed to combine the best leadership and capabilities in healthcare and tech to inform, support and drive transformation enablement while addressing system fragmentation, and improving access to ? and quality of ? care. In collaboration with health system and technology leaders through partnerships, investments, and acquisitions, HATCo seeks to drive efficiency, affordability, and transparency to transform the healthcare industry to be more proactive, resilient, and equitable for communities and society.
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